DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Interconnection Application
and
Terms and Conditions
for
Units Over 10 kW up to 2,000 kW
Level 2
General Information
The following process and procedures were developed in accordance with New
Jersey Administrative Code (“N.J.A.C.”) Section 14:4-9, the “Net Metering and
Interconnection Standards for Class I Renewable Energy Systems.” Additional details
may be seen in Public Service Electric and Gas PSE&G’s (“PSE&G’s”) “Information and
Requirements for Electric Service” document, which is generally known to all electrical
contractors doing business in PSE&G’s service area, and is available from any PSE&G
Wiring Inspection Department.
To qualify for Net Metering, a Customer must meet the following conditions:
a. Will generate electricity on the customer’s side of the meter using a Class 1
renewable energy resource as defined in N.J.A.C. 14:4-9.2;
b. Has an annual peak demand or peak load contribution, before accounting for
the effects of the Customer’s generating system, that is less than 10
megawatts;
c. Has a generating system sized no larger than what is allowed in N.J.A.C. 14.49.3(a) for the Customer’s residence or facility, as applicable;
d. Has a generating system that is limited to a maximum size of 2,000 Kilowatts;
and
e. Meets all other requirements of N.J.A.C. 14:4-9.
Please refer to PSE&G’s Tariff and the general terms and conditions for net
metering for additional information on applicable rates
1.0 Application Process:
a. Prior to the electrical contractor or solar installer beginning installation,
Customer submits this Interconnection Application (“Application”) to PSE&G
filled out completely.
1
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
b. PSE&G evaluates the Application for completeness and notifies the Customer
within 3 business days of receipt of the Application whether or not it is
complete and, if not, advises the Customer of what is incomplete or missing in
the Application.
c. Customer’s solar installer or electrical contractor must (i) contact PSE&G’s
local Wiring Inspection Department, (ii) complete the Application for Wiring
Inspection, and (iii) obtain a DWMS job number prior to submitting such
Application for Wiring Inspection.
d. The aggregate generation capacity on the distribution circuit to which the
Customer-generator Facility will interconnect, including the capacity of the
Customer-generator Facility, shall not cause any distribution protective
equipment (including but not limited to substation breakers, fuse cutouts, and
line reclosers), or Customer equipment on the electric distribution system, to
exceed 90 percent of the short circuit interrupting capability of the equipment.
In addition, a Customer-generator Facility shall not be connected to a circuit
that already exceeds 90 percent of the short circuit interrupting capability,
prior to interconnection of the Customer-generator Facility.
e.
If there are posted transient stability limits to generating units located in the
general electrical vicinity of the proposed Point of Common Coupling (e.g.,
within 3 or 4 transmission voltage level busses), the aggregate generation
capacity (including the Customer-generator Facility) connected to the
distribution low voltage side of the substation transformer feeding the
distribution circuit containing the Point of Common Coupling shall not exceed
10 MW.
f. The aggregate generation capacity connected to the distribution circuit,
including the Customer-generator Facility, shall not contribute more than 10%
to the distribution circuit’s maximum fault current at the point on the high
voltage (primary) level nearest the proposed point of common coupling.
g. If a Customer-generator Facility is to be connected to a radial distribution
circuit, the aggregate generation capacity connected to the electric distribution
system by non-utility sources, including the Customer-generator Facility, shall
not exceed 10% (or 15% for solar electric generation) of the total circuit
annual peak load. For the purposes of this paragraph, annual peak load shall
be based on measurements taken over the twelve months previous to the
submittal of the Application, measured at the substation nearest to the
Customer-generator Facility.
h. If a Customer-generator Facility is to be connected to PSE&G three-phase,
three wire primary distribution lines, a three-phase or single-phase generator
shall be connected phase-to-phase.
2
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
i. If a Customer-generator Facility is to be connected to PSE&G three-phase,
four wire primary distribution lines, a three-phase or single phase generator
shall be connected line-to-neutral and shall be effectively grounded.
j. If a Customer-generator Facility is to be connected to a single-phase shared
secondary, the aggregate generation capacity on the shared secondary,
including the Customer-generator Facility, shall not exceed 20 kilovolt-amps
(kVA).
k. If a Customer-generator Facility is single-phase and is to be connected to a
transformer center tap neutral of a 240 volt service, the addition of the
Customer-generator Facility shall not create an imbalance between the two
sides of the 240 volt service, which is greater than 20% of the nameplate
rating of the service transformer.
l. A Customer-generator Facility’s Point of Common Coupling shall not be on a
transmission line.
m. If a Customer-generator Facility’s proposed Point of Common Coupling is on
a spot or an area network, the interconnection shall meet the following
requirements, in addition to the requirements in (d) through (l) above:
1. For a Customer-generator Facility that will be connected to a spot
network circuit, the aggregate generation capacity connected to that
spot network from customer-generator facilities, including the
Customer-generator Facility , shall not exceed 5% of the spot
network’s maximum load;
2.
For a Customer-generator Facility that utilizes inverter based
protective functions, which will be connected to an area network, the
Customer-generator Facility , combined with other exporting
customer-generator facilities on the load side of network protective
devices, shall not exceed 10% of the minimum annual load on the
network, or 500 kW, whichever is less. For the purposes of this
paragraph, the percent of minimum load for solar electric generation
Customer-generator Facility shall be calculated based on the
minimum load occurring during an off-peak daylight period;
3. For a Customer-generator Facility that will be connected to a spot or
an area network that does not utilize inverter based protective
functions, or for an inverter based Customer-generator Facility that
does not meet the requirements of 1 or 2 above, the Customergenerator Facility shall utilize reverse power relays or other
protection devices that ensure no export of power from the
Customer-generator Facility, including inadvertent export (under
3
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
fault conditions), may occur that could adversely affect protective
devices on the network.
n. PSE&G will then determine whether the Customer’s equipment can be
interconnected safely and reliably with the PSE&G system using the screens
for Level 2 facilities referenced above. The Customer shall provide one-line
diagrams or system schematics and equipment details as requested in this
Application. PSE&G’s review can take up to 20 business days. PSE&G shall
notify the Customer in writing via e-mail, fax or first class mail as to whether
or not the installation is approved as follows:
1.
The Customer-generator Facility meets the applicable requirements
for Level 2 facilities in N.J.A.C. 14:4-9.8. In this case, PSE&G
shall notify the Customer that the interconnection will be finally
approved upon completion of the process set forth at (o) through
(p) below. Within three business days after this notice, PSE&G
shall provide the Customer with an executable Interconnection
Agreement;
2.
The Customer-generator Facility has failed to meet one or more of
the applicable requirements in N.J.A.C. 14:4-9.8, but PSE&G has
nevertheless determined that the Customer-generator Facility can
be interconnected consistent with safety, reliability, and power
quality. In this case, PSE&G shall notify the Customer that the
interconnection will be finally approved upon completion of the
process set forth at (o) through (r) below. Within five (5) business
days after this notice, PSE&G shall provide the Customer with an
executable Interconnection Agreement;
3.
The Customer-generator Facility has failed to meet one or more of
the applicable requirements in N.J.A.C. 14:4-9.8, but the initial
review indicates that additional review may enable PSE&G to
determine that the Customer-generator Facility can be
interconnected consistent with safety, reliability, and power
quality. In such a case, PSE&G shall offer to perform additional
review to determine whether minor modifications to the electric
distribution system (for example, changing meters, fuses, or relay
settings) would enable the interconnection to be made consistent
with safety, reliability and power quality. PSE&G shall provide to
the Customer a non-binding, good faith estimate of the costs of
such additional review, and/or such minor modifications. PSE&G
shall undertake the additional review or modifications only after
the Customer consents to pay for the review and/or modifications.
If the additional review required is substantial, an Impact Study
may need to be performed in accordance with the attached
Appendix 3, Impact Study Agreement; or
4
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
4.
The Customer-generator Facility has failed to meet one or more of
the applicable requirements at (c) through (l) above, and the initial
review indicates that additional review would not enable PSE&G
to determine that the Customer-generator Facility could be
interconnected consistent with safety, reliability, and power
quality. In such a case, PSE&G shall notify the Customer that the
Interconnection Application has been denied, and shall provide an
explanation of the reason(s) for the denial, including a list of
additional information and/or modifications to the Customer's
facility, which would be required in order to obtain an approval
under level 2 interconnection procedures.
o. A Customer that receives an interconnection agreement under (n)1 or 2 above,
or after successful completion of the tasks contemplated in (n) 3 above, shall:
1.
Execute the agreement and return it to PSE&G at least ten (10)
business days prior to starting operation of the Customer-generator
Facility; and
2.
Indicate to PSE&G the anticipated Date of Commercial Operation
of the Customer-generator Facility.
p. After installation, the local electrical inspection authority having jurisdiction
must inspect the work, and submit a Certificate of Approval to the local
PSE&G Wiring Inspection Department. Prior to allowing parallel operation,
PSE&G may inspect the Customer’s facility for compliance with its standards,
which may include a Witness Test, and then schedules the Customer for the
appropriate metering equipment replacement, if necessary. If a readily
accessible exterior disconnect switch is not installed, the Customer must be
present for installation of the metering equipment and the Witness Test, in
order to furnish access to the Customer-generator Facility’s disconnecting
means.
q. PSE&G then notifies the Customer in writing that interconnection of the
Customer’s facility is authorized by sending a signed copy of the Certificate
of Completion to the Customer. The Customer shall notify PSE&G at least
five (5) days prior notice to arrange for a Witness Test and meter replacement.
If the Witness Test was not satisfactory, PSE&G has the right to disconnect
the Customer’s facility. The Customer has no right to operate in parallel until
a Witness Test has been performed or previously waived by PSE&G on the
Application Form. If required, PSE&G will endeavor to complete the Witness
Test within 10 business days of receipt of the Certificate of Approval.
5
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
r. For an Customer that receives an interconnection agreement under (o)1 or 2
above, approval of interconnected operation of the Customer-generator
Facility shall be conditioned on all of the following occurring:
1. The interconnection has been approved by the electrical code official
with jurisdiction over the interconnection;
2. PSE&G’s inspection and/or witnessing of commissioning tests
arranged under (p) above are successfully completed; and
3. The planned start date provided by the Customer under (o) above has
passed.
s. If the Customer’s Application is not approved, PSE&G shall advise the
Customer why the Customer-generator Facility cannot be interconnected
safely and reliably, and what must be done by the Customer to permit it to
interconnect with PSE&G as per (n) 4 above. If it is determined that the
Customer must resubmit its Application so that its facility can be considered
under the Level 3 interconnection review process, then the requirements
referenced in N.J.A.C. 14:4-9.9 shall apply.
2.0 Contact Information:
Customer must provide the contact information for the legal applicant (i.e. the
Customer-Generator as defined in N.J.A.C. 14:4-9). If another party is responsible for
interfacing with PSE&G, you should provide that contact information as well.
3.0 Ownership Information:
Please enter the legal names of the owner or owners of the Customer’s facility
(i.e. the Customer-Generator Facility as defined in N.J.A.C. 14:4-9), including their
percentage ownership.
4.0 Customer-Generator Facility Certification Requirements:
To qualify under this specific Application process, the Customer-Generator’s applicable
equipment must be:
UL1741 Listed - This standard (“Inverters, Converters, and Controllers for Use in
Independent Power Systems”) addresses the electrical interconnection design of various
forms of generating equipment. Many manufacturers choose to submit their equipment
to a Nationally Recognized Testing Laboratory (“NRTL”) that verifies compliance with
UL1741. This “listing” is then marked on the equipment and supporting documentation.
IEEE 1547 Compliant - This standard (“Interconnecting Distributed Resources with
Electric Power Systems”) contains additional requirements for the design of distributed
6
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
generation equipment, and includes requirements for installation practices and testing.
(IEEE 1547 includes, by reference, IEEE 929.)
5.0 Interconnection Fees in accordance with N.J.A.C. 14:4-9.10:
(a) For a Level 2 interconnection review, PSE&G shall charge a fee of $50 plus
$1 per kilowatt of the Customer-Generator Facility's capacity, plus the cost of
any minor modifications to PSE&G’s electric distribution system or additional
review, if required under N.J.A.C. 14:4-9.8(o)3 or 4. Costs for such minor
modifications or additional review shall be determined by PSE&G. Costs for
engineering work done as part of any Impact Study shall not exceed $100 per
hour. If the facility does not qualify for a Level 2 review, the following would
apply.
(b) For a Level 3 interconnection review, PSE&G shall charge a fee of $100 plus
$2 per kilowatt of the Customer-Generator Facility's capacity, as well as
charges for actual time spent on any impact and/or facilities studies required
under N.J.A.C. 14:4-9.9. Costs for engineering work done as part of an
Impact Study or Facilities Study shall not exceed $100 per hour. If PSE&G
must install facilities in order to accommodate the interconnection of the
Customer-Generator Facility, the cost of such facilities shall be the
responsibility of the Applicant.
7
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Appendix 2
Interconnection Application
for
Customer-generator Facilities
Greater than 10 kVA up to 2,000 kVA
Customer:
Name: _____________________________ Phone: (___)__________
Address:_____________________________ Municipality: ________________
Consulting Engineer or Contractor:
Name: _____________________________ Phone: (___)__________
Address:_____________________________
Estimated In-Service Date: ________________________________
Existing Electric Service:
Capacity: __________Amps Voltage: __________Volts
Service Character:
Single Phase
3 Phase Transformer Connection
Three Phase Secondary
Wye
Delta
Location of Protective Interface Equipment on Property:
(include address if different from customer address)
IEEE 1547 Listed?
Yes
No
(If yes, attach manufacturer’s cut
sheet showing IEEE 1547 listing)
UL 1741 Listed?
Yes
No
(If yes, attach manufacturer’s cut
sheet showing UL 1741 listing)
8
Energy Producing Equipment/Inverter Information:
Manufacturer: ____________________________________________
Model No. ________________ Version No. ____________________
Synchronous
Induction
Inverter
Other _________
Rating: __________ kW
Rating: __________ kVA
Rated Output: VA Rated Voltage: Volts
Rate Frequency: Hertz Rated Speed: RPM
Efficiency: % Power Factor: ________ %
Rated Current: Amps Locked Rotor Current: Amps
Synchronous Speed: RPM Winding Connection:
Min. Operating Freq./Time:
Generator Connection:
Delta
Wye
Wye Grounded
Yes
No; attach product
System Type Tested (Total System):
literature
Yes
No
One Line Diagram attached:
Yes
No
Installation Test Plan attached:
For Synchronous Machines:
Submit copies of the Saturation Curve and the Vee Curve
Salient
Non-Salient
Torque: _____lb-ft Rated RPM: _______ Field Amperes: ________ at rated
generator voltage and current and ________% PF over-excited
Type of Exciter: ________________________________________________
Output Power of Exciter: _________________________________________
Type of Voltage Regulator: _______________________________________
Direct-axis Synchronous Reactance (Xd) _______ohms
Direct-axis Transient Reactance
(X'd) _______ohms
Direct-axis Sub-transient Reactance (X"d) _______ohms
For Induction Machines:
Rotor Resistance (Rr)_____ohms Exciting Current ____Amps
Rotor Reactance (Xr)_____ohms Reactive Power Required:
Magnetizing Reactance (Xm)_____ohms ___VARs (No Load)
Stator Resistance (Rs)_____ohms ___VARs (Full Load)
Stator Reactance (Xs)_____ohms
Short Circuit Reactance (X"d)_____ohms
Phases:
Single
Three-Phase
O
Frame Size: ____________ Design Letter: ____ Temp. Rise: ____________ C.
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
For Inverters:
Manufacturer:_______________________ Model: ____________________
Forced Commutated
Line Commutated
Type:
Rated Output _________ Amps ________ Volts
Efficiency ________%
Customer Signature:
_____________________________ __________________________
CUSTOMER
TITLE
10
_________
DATE
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Appendix 3
Impact Study Agreement
This Impact Study Agreement (“Agreement”) is made and entered into this ___
day of ______ by and between __________________, a _____________ organized and
existing under the laws of the State of _____________, (‘‘Customer,’’) and Public
Service Electric and Gas PSE&G, a company existing under the laws of the State of New
Jersey, (‘‘PSE&G’’). Customer and PSE&G each may be referred to as a ‘‘Party,’’ or
collectively as the ‘‘Parties.’’
Recitals:
Whereas, Customer is proposing to develop a Customer-generator Facility or
generating capacity addition to an existing Customer-generator Facility consistent with
the Interconnection Application completed by Customer on ________________; and
Whereas, Customer desires to interconnect the Customer-generator Facility with
PSE&G’s Distribution System;
Whereas, PSE&G has completed an initial review and provided the results of
said study to Customer; and
Whereas, Customer has requested PSE&G to perform an Impact Study to assess
the impact of interconnecting the Customer-generator Facility to PSE&G’s Distribution
System;
Now, therefore, in consideration of and subject to the mutual covenants
contained herein the Parties agreed as follows:
1.0
When used in this Agreement, with initial capitalization, the terms specified shall
have the meanings indicated. Terms used in this Agreement with initial
capitalization but not defined in this Agreement shall have the meanings specified
in Attachment 1 of the Customer-generator Interconnection Agreement.
2.0
Customer elects and PSE&G shall cause to be performed an Interconnection
System Impact Study consistent with Section (e) of the Interconnection
Application.
3.0
The scope of this Impact Study shall be subject to the assumptions set forth in
Attachment A to this Agreement.
4.0
The Impact Study will be based upon the results of the initial review and the
technical information provided by Customer in the Interconnection Application.
PSE&G reserves the right to request additional technical information from
Customer as may become reasonably necessary consistent with Good Utility
Practice during the course of the Impact Study. If Customer modifies its
11
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
designated Point of Common Coupling, Interconnection Application, or the
technical information provided therein is modified, the time to complete the
Impact Study may be extended.
5.0
The Impact Study report shall provide the following information:
a)
Identification of any required minor modifications necessary to allow for
the interconnection of the Customer-generator Facility; and
b)
Description and non-binding, good faith estimated cost of facilities
required to interconnect the Customer-generator Facility to PSE&G’s
Distribution System and to address the identified minor modifications
required.
c)
An Impact Study shall include the following elements, as applicable:
1.
2.
3.
4.
5.
6.
7.
Load flow study;
Short-circuit study;
Circuit protection and coordination study;
Impact on the operation of PSE&G’s electric distribution system;
Stability study (and the conditions that would justify including this
element in the Impact Study);
Voltage collapse study (and the conditions that would justify
including this element in the Impact Study); and
Additional elements, if approved in writing by Board staff prior to
the Impact Study.
6.0
PSE&G requires an up-front deposit of the good faith estimated study costs.
7.0
The Impact Study shall be completed based on a mutually agreed upon schedule,
unless the schedule is extended due to additional information being required from
the Customer during the course of the study.
8.0
Study fees shall be based on actual costs and will be invoiced to Customer within
ninety (90) days from when the study is transmitted to Customer.
9.0
Customer shall pay any actual study costs that exceed the deposit without interest
within thirty (30) calendar days of receipt of the invoice. PSE&G shall refund any
excess amount without interest within thirty (30) calendar days of the invoice.
In witness whereof, the Parties have caused this Agreement to be duly executed
by their duly authorized officers or agents on the day and year first above written.
PSE&G Signature:
Title:
Date:
Customer Signature:
Title:
Date:
12
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Attachment A to Impact Study Agreement
Assumptions Used in Conducting the Impact Study
The Impact Study shall be based upon the results of PSE&G’s initial review, subject to
any modifications, and the following assumptions:
(1) Designation of Point of Common Coupling and configuration to be studied.
(2) Designation of alternative Points of Common Coupling and configuration.
Items (1) and (2) are to be completed by Customer. Other assumptions (listed below) are
to be provided by Customer and PSE&G.
13
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Appendix 4
Certificate of Completion
Installation Information:
Check if owner-installed
Customer-generator: _________________________Contact Person:
Mailing Address:
Location of Facility (if different from above):
______________________________________________________
City:
State:
Telephone (Daytime):
(Evening):
Facsimile Number:
E-Mail Address:
Zip Code:
Electrical Contractor:
Name:
Mailing Address:
City:
State:
Telephone (Daytime):
(Evening):
Facsimile Number:
E-Mail Address:
Zip Code:
License number: ____________________________________
Date Interconnection Application was approved by the PSE&G:
_______________________
Application ID number: ______________________________
Electrical Inspection:
The system has been installed and inspected in compliance with the local
Building/Electrical Code of
(appropriate governmental authority)
Signed (Local Electrical Wiring Inspector, or attach signed electrical inspection):
___________________________
Name (printed):
Date: ___________
14
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Person/Entity Installing the Customer-generator Facility:
Name:___________________________
PSE&G:___________________________________
Mailing Address:
City:
State:
Zip Code:
Telephone (Daytime):
(Evening):
Facsimile Number:
E-Mail Address:
As a condition of interconnection you are required to send/fax a copy of this form along
with a copy of the signed electrical permit to (insert the PSE&G associate’s name below):
Name: _____________________
PSE&G
Mail 1:_____________________
Mail 2:_____________________
City, State ZIP: ______________
Fax No.:
_____
Final Approval of Interconnection Application
The Certificate of Completion has been received and final approval to interconnect the
Customer-generator Facility is granted.
PSE&G Signature:
Title:
15
Date:
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Appendix 5
CUSTOMER-GENERATOR
INTERCONNECTION AGREEMENT
(For Customer-Generator Facilities No Larger Than 2 MW)
16
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
STANDARD CUSTOMER-GENERATOR INTERCONNECTION AGREEMENT
FOR INTERCONECTION OF NEW CUSTOMER-GENERATOR FACILITIES
WITH A CAPACITY OF 2 MVA OR LESS
This Agreement is made and entered into this ___ day of ______ by and between
__________________, a _____________ organized and existing under the laws of the
State of _____________, (‘‘Customer,’’) and Public Service Electric and Gas, a company
existing under the laws of the State of New Jersey, (‘‘PSE&G’’). Customer and PSE&G
each may be referred to as a ‘‘Party,’’ or collectively as the ‘‘Parties.’’
Recitals:
Whereas, Customer is proposing to develop a Customer-generator Facility, or
generating capacity addition to an existing Customer-generator Facility, consistent
with the Interconnection Application completed by Customer on
________________; and
Whereas, Customer desires to interconnect the Customer-generator with PSE&G’s
Distribution System;
Whereas, PSE&G has completed an initial review and provided the results of said
review to Customer;
Whereas, Customer requested PSE&G to perform an Impact Study to assess the
impact of interconnecting the Generating Facility to PSE&G’s Distribution System;
Now, therefore, in consideration of and subject to the mutual covenants contained
herein, the Parties agreed as follows:
Article 1.
Scope and Limitations of Agreement
1.1
This Agreement shall be used for all Interconnection Applications
submitted under the terms of the New Jersey Administrative Code
(“N.J.A.C.”) Section 14:4-9, the “Net Metering and
Interconnection Standards for Class I Renewable Energy Systems,”
except for those submitted under the Level I application process
outlined in such regulations for 10 kW and under inverter-based
projects.
1.2
This Agreement governs the terms and conditions under which the
Customer-generator Facility will interconnect to, and operate in
parallel with, PSE&G’s Distribution System.
1.3
This Agreement does not constitute an agreement to purchase or
deliver the Customer’s power.
17
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
1.4
1.5
Nothing in this Agreement is intended to affect any other
agreement between PSE&G and the Customer.
Responsibilities of the Parties
1.5.1 The Parties shall perform all obligations of this Agreement
in accordance with all Applicable Laws and Regulations,
Operating Requirements, and Good Utility Practice.
1.5.2
The Customer shall construct, interconnect, operate and
maintain its Customer-generator Facility, and construct,
operate, and maintain its Interconnection Facilities in
accordance with the applicable manufacturer’s
recommended maintenance schedule, in accordance with
this Agreement, and with Good Utility Practice.
1.5.3 PSE&G shall construct, own, operate, and maintain its
Distribution System and Interconnection Facilities in
accordance with this Agreement, and with Good Utility
Practice.
1.5.4 The Customer agrees to construct its facilities or systems in
accordance with applicable specifications that meet or
exceed those provided by the National Electrical Code,
National Electrical Safety Code, the American National
Standards Institute, IEEE, Underwriters Laboratories, any
Operating Requirements in effect at the time of
construction, and other applicable national and State codes
and standards. The Customer agrees to design, install,
maintain, and operate its Customer-generator Facility so as
to reasonably minimize the likelihood of a disturbance
adversely affecting or impairing the system or equipment of
PSE&G or Affected Systems.
1.5.5
Each Party shall operate, maintain, repair, and inspect, and
shall be fully responsible for the facilities that it now or
subsequently may own unless otherwise specified in the
Attachments to this Agreement. Each Party shall be
responsible for the safe installation, maintenance, repair
and condition of their respective lines and appurtenances on
their respective sides of the point of change of ownership.
PSE&G and the Customer, as appropriate, shall provide
Interconnection Facilities that adequately protect PSE&G’s
Distribution System, personnel, and other persons from
damage and injury. The allocation of responsibility for the
design, installation, operation, maintenance and ownership
18
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
of Interconnection Facilities shall be delineated in the
Attachments to this Agreement.
1.5.6 PSE&G shall coordinate with any Affected Systems to
support the interconnection as contemplated under the
terms of the New Jersey Administrative Code (“N.J.A.C.”)
Section 14:4-9(d).
1.6
Parallel Operation Obligations
Once the Customer-generator Facility has been authorized to commence
parallel operation, the Customer shall abide by all pertinent rules and
procedures pertaining to the parallel operation of the Customer-generator
Facility, including, but not limited to; 1) the rules and procedures
concerning the operation of generation set forth in the Tariff or by
PSE&G’s Distribution System operations personnel; and, 2) any
Operating Requirements set forth in Attachment 3 of this Agreement.
1.7
Metering
The Customer shall be responsible for the cost for the purchase,
installation, operation, maintenance, testing, repair, and replacement of
metering and data acquisition equipment specified in Attachments 2 and 3
of this Agreement.
1.8
Reactive Power
The Customer shall design its Customer-generator Facility to maintain a
composite power delivery at continuous rated power output at the Point of
Common Coupling at a power factor within the range of 0.95 leading to
0.95 lagging, unless PSE&G has established different requirements that
apply to all similarly situated generators in the control area on a
comparable basis. The requirements of this paragraph shall not apply to
wind generators.
1.9
Capitalized Terms
Capitalized terms used herein shall have the meanings specified in the
Glossary of Terms in Attachment 1 or the body of this Agreement.
Article 2.
2.1
Inspection, Testing, Authorization, and Right of Access
Equipment Testing and Inspection
The Customer shall test and inspect its Customer-generator Facility and
Interconnection Facilities prior to interconnection, and in accordance with
19
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
the requirements of IEEE 1547.1. The Customer shall notify PSE&G of
such activities no fewer than fifteen (15) days (or as may be agreed to by
the Parties) prior to such testing and inspection. Testing and inspection
shall occur on a Business Day. The PSE&G may, at its own expense, send
qualified personnel to the Customer-generator Facility site to inspect the
interconnection and observe the testing. The Customer shall provide
PSE&G a written test report when such testing and inspection is
completed.
2.2
Authorization Required Prior to Parallel Operation
The Customer shall not operate its Customer-generator Facility in parallel
with PSE&G’s Distribution System without prior written authorization of
PSE&G. PSE&G will provide such authorization once PSE&G receives
notification that the Customer has complied with all applicable parallel
operation requirements. Such authorization shall not be unreasonably
withheld, conditioned, or delayed.
2.3
Right of Access
2.3.1 Upon reasonable notice, PSE&G may send a qualified person to
the premises of the Customer to inspect the interconnection, and
observe the commissioning of the Customer-generator Facility
(including any required testing), startup, and operation for a period
of up to three Business Days after initial start-up of the unit. In
addition, the Customer shall notify PSE&G at least fifteen (15)
days prior to conducting any on-site verification testing of the
Customer-generator Facility.
2.3.2
Article 3.
3.1
Following the initial inspection process described above, at
reasonable hours, and upon reasonable notice, or at any time
without notice in the event of an emergency or hazardous
condition, PSE&G shall have access to the Customer’s premises
for any reasonable purpose in connection with the performance of
the obligations imposed on it by this Agreement or if necessary to
meet its legal obligation to provide service to other customers.
Effective Date, Term, Termination, and Disconnection
Effective Date
This Agreement shall become effective upon execution by the Parties.
3.2
Term of Agreement
20
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
This Agreement shall become effective on the Effective Date and shall
remain in effect for a period of ten years from the Effective Date or such
other longer period as the Customer may request and shall be
automatically renewed for each successive one-year period thereafter,
unless terminated earlier in accordance with Article 3.3 of this Agreement.
3.3
Termination
No termination shall become effective until the Parties have complied with
all Applicable Laws and Regulations applicable to such termination,
including the filing with the NJBPU of a notice of termination of this
Agreement (if required.
3.3.1
The Customer may terminate this Agreement at any time by giving
PSE&G 20 Business Days written notice.
3.3.2
Either Party may terminate this Agreement after Default pursuant
to Article 6.6.
3.3.3
Upon termination of this Agreement, the Customer-generator
Facility will be disconnected from PSE&G’s Distribution System.
The termination of this Agreement shall not relieve either Party of
its liabilities and obligations, owed or continuing at the time of the
termination.
3.3.4 This provisions of this Article shall survive termination or
expiration of this Agreement.
3.4
Temporary Disconnection
Temporary disconnection shall continue only for so long as reasonably
necessary under Good Utility Practice.
3.4.1
Emergency Conditions—“Emergency Condition” shall mean a
condition or situation: (1) that in the judgment of the Party making
the claim is imminently likely to endanger life or property; or (2)
that, in the case of PSE&G, is imminently likely (as determined in
a non-discriminatory manner) to cause a material adverse effect on
the security of, or damage to the Distribution System, PSE&G’s
Interconnection Facilities or any Affected Systems; or (3) that, in
the case of the Customer, is imminently likely (as determined in a
non-discriminatory manner) to cause a material adverse effect on
the security of, or damage to, the Customer-generator Facility or
the Customer’s Interconnection Facilities. Under Emergency
Conditions, PSE&G may immediately suspend interconnection
21
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
service and temporarily disconnect the Customer-generator
Facility. PSE&G shall notify the Customer promptly when it
becomes aware of an Emergency Condition that may reasonably be
expected to affect the Customer’s operation of the Customergenerator Facility. The Customer shall notify PSE&G promptly
when it becomes aware of an Emergency Condition that may
reasonably be expected to affect PSE&G’s Distribution System or
other Affected Systems. To the extent information is known, the
notification shall describe the Emergency Condition, the extent of
the damage or deficiency, the expected effect on the operation of
both Parties’ facilities and operations, its anticipated duration, and
the necessary corrective action.
3.4.2
Routine Maintenance, Construction, and Repair - PSE&G may
interrupt interconnection service or curtail the output of the
Customer-generator Facility and temporarily disconnect the
Customer-generator Facility from PSE&G’s Distribution System
when necessary for routine maintenance, construction, and repairs
on PSE&G’s Distribution System. PSE&G shall provide the
Customer with five Business Days notice prior to such
interruption. PSE&G shall use reasonable efforts to coordinate
such reduction or temporary disconnection with the Customer.
3.4.3
Forced Outages - During any forced outage, PSE&G may suspend
interconnection service to effect immediate repairs on PSE&G’s
Distribution System. PSE&G shall use reasonable efforts to
provide the Customer with prior notice. If prior notice is not given,
PSE&G shall, upon request, provide the Customer written
documentation after the fact explaining the circumstances of the
disconnection.
3.4.4
Adverse Operating Effects - PSE&G shall notify the Customer as
soon as practicable if, based on Good Utility Practice, operation of
the Customer-generator Facility may cause disruption or
deterioration of service to other customers served from the same
electric system, or if operating the Customer-generator Facility
could cause damage to PSE&G’s Distribution System or Affected
Systems. Supporting documentation used to reach the decision to
disconnect shall be provided to the Customer upon request. If, after
notice, the Customer fails to remedy the adverse operating effect
within a reasonable time, PSE&G may disconnect the Customergenerator Facility. PSE&G shall provide the Customer with five
Business Day notice of such disconnection, unless the provisions
of Article 3.4.1 apply.
22
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
3.4.5
3.4.6
Article 4.
4.1
Modification of the Customer-generator Facility - The Customer
must receive written authorization from PSE&G before making
any change to the Customer-generator Facility that may have a
material impact on the safety or reliability of the Distribution
System. Such authorization shall not be unreasonably withheld.
Modifications shall be done in accordance with Good Utility
Practice. If the Customer makes such modification without
PSE&G’s prior written authorization, the latter shall have the right
to temporarily disconnect the Customer-generator Facility.
Reconnection - The Parties shall cooperate with each other to
restore the Customer-generator Facility, Interconnection Facilities,
and PSE&G’s Distribution System to their normal operating state
as soon as reasonably practicable following a temporary
disconnection.
Cost Responsibility for Interconnection Facilities and Distribution
Upgrades
Interconnection Facilities
4.1.1 The Customer shall pay for the cost of the Interconnection
Facilities itemized in Attachment 2 of this Agreement. If a
Facilities Study was performed, PSE&G shall identify its
Interconnection Facilities necessary to safely interconnect the
Customer-generator Facility with PSE&G’s Distribution System,
the cost of those facilities, and the time required to build and install
those facilities.
4.1.2 The Customer shall be responsible for its share of all reasonable
expenses, including overheads, associated with (1) owning,
operating, maintaining, repairing, and replacing its own
Interconnection Facilities, and (2) operating, maintaining,
repairing, and replacing PSE&G’s Interconnection Facilities.
4.2
Distribution Upgrades
PSE&G shall design, procure, construct, install, and own any Distribution
Upgrades. The actual cost of the Distribution Upgrades, including
overheads, shall be directly assigned to the Customer.
Article 5.
Billing, Payment, Milestones, and Financial Security
23
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
5.1
Billing and Payment Procedures and Final Accounting
5.2
5.1.1
PSE&G shall bill the Customer for the design, engineering,
construction, and procurement costs of Interconnection Facilities
and Upgrades contemplated by this Agreement on a monthly basis,
or as otherwise agreed by the Parties. The Customer shall pay each
bill within 30 calendar days of receipt, or as otherwise agreed to by
the Parties.
5.1.2
Within ninety (90) calendar days of completing the construction
and installation of PSE&G’s Interconnection Facilities and
Distribution Upgrades described in the Attachments to this
Agreement, PSE&G shall provide the Customer with a final
accounting report of any difference between (1) the Customer’s
cost responsibility for the actual cost of such facilities and
Distribution Upgrades, and (2) the Customer’s previous deposit
and aggregate payments to PSE&G for such Interconnection
Facilities and Distribution Upgrades. If the Customer’s cost
responsibility exceeds its previous deposit and aggregate
payments, PSE&G shall invoice the Customer for the amount due
and the Customer shall make payment to PSE&G within thirty (30)
calendar days. If the Customer’s previous deposit and aggregate
payments exceed its cost responsibility under this Agreement,
PSE&G shall refund to the Customer an amount equal to the
difference within thirty (30) calendar days of the final accounting
report.
Customer Deposit
At least twenty (20) Business Days prior to the commencement of the
design, procurement, installation, or construction of a discrete portion of
PSE&G’s Interconnection Facilities and Distribution Upgrades, the
Customer shall provide PSE&G with a deposit equal to 50% of the cost
estimated for its Interconnection Facilities prior to its beginning design of
such facilities.
Article 6.
6.1
Assignment, Liability, Indemnity, Force Majeure, Consequential
Damages, and Default
Assignment
This Agreement may be assigned by either Party upon fifteen (15)
Business Days prior written notice, and with the opportunity to object by
the other Party; provided that:
24
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
6.1.1 Either Party may assign this Agreement without the consent of the
other Party to any affiliate of the assigning Party with an equal or
greater credit rating and with the legal authority and operational
ability to satisfy the obligations of the assigning Party under this
Agreement;
6.2
6.1.2
The Customer shall have the right to assign this Agreement,
without the consent of PSE&G, for collateral security purposes to
aid in providing financing for the Customer-generator Facility,
provided that the Customer will promptly notify PSE&G of any
such assignment.
6.1.3
Any attempted assignment that violates this Article is void and
ineffective. Assignment shall not relieve a Party of its obligations,
nor shall a Party’s obligations be enlarged, in whole or in part, by
reason thereof. An assignee is responsible for meeting the same
obligations as the Customer. Where required, consent to
assignment will not be unreasonably withheld, conditioned or
delayed.
Limitation of Liability
Each Party’s liability to the other Party for any loss, cost, claim, injury,
liability, or expense, including reasonable attorney’s fees, relating to or
arising from any act or omission in its performance of this Agreement,
shall be limited to the amount of direct damage actually incurred. In no
event shall either Party be liable to the other Party for any indirect, special,
consequential, or punitive damages, except as authorized by this
Agreement.
6.3
Indemnity
6.3.1
This provision protects each Party from liability incurred to third
parties as a result of carrying out the provisions of this Agreement.
Liability under this provision is exempt from the general
limitations on liability found in Article 6.2.
6.3.2 The Parties shall at all times indemnify, defend, and hold the other
Party harmless from, any and all damages, losses, claims,
including claims and actions relating to injury to or death of any
person or damage to property, demand, suits, recoveries, costs and
expenses, court costs, attorney fees, and all other obligations by or
to third parties, arising out of or resulting from the other Party’s
action or failure to meet its obligations under this Agreement on
behalf of the indemnifying Party, except in cases of gross
negligence or intentional wrongdoing by the indemnified Party.
25
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
6.3.3 If an indemnified person is entitled to indemnification under this
Article as a result of a claim by a third party, and the indemnifying
Party fails, after notice and reasonable opportunity to proceed
under this Article, to assume the defense of such claim, such
indemnified person may at the expense of the indemnifying Party
contest, settle or consent to the entry of any judgment with respect
to, or pay in full, such claim.
6.3.4 If an indemnifying party is obligated to indemnify and hold any
indemnified person harmless under this Article, the amount owing
to the indemnified person shall be the amount of such indemnified
person’s actual loss, net of any insurance or other recovery.
6.3.5
6.4
Promptly after receipt by an indemnified person of any claim or
notice of the commencement of any action or administrative or
legal proceeding or investigation as to which the indemnity
provided for in this Article may apply, the indemnified person
shall notify the indemnifying party of such fact. Any failure of or
delay in such notification shall not affect a Party’s indemnification
obligation unless such failure or delay is materially prejudicial to
the indemnifying party.
Consequential Damages
Other than as expressly provided for in this Agreement, neither Party shall
be liable under any provision of this Agreement for any losses, damages,
costs or expenses for any special, indirect, incidental, consequential, or
punitive damages, including but not limited to loss of profit or revenue,
loss of the use of equipment, cost of capital, cost of temporary equipment
or services, whether based in whole or in part in contract, in tort, including
negligence, strict liability, or any other theory of liability; provided,
however, that damages for which a Party may be liable to the other Party
under another agreement will not be considered to be special, indirect,
incidental, or consequential damages hereunder.
6.5
Force Majeure
6.5.1 As used in this Article, a Force Majeure Event shall mean “any act
of God, labor disturbance, act of the public enemy, war,
insurrection, riot, fire, storm or flood, explosion, breakage or
accident to machinery or equipment, any order, regulation or
restriction imposed by governmental, military or lawfully
established civilian authorities, or any other cause beyond a Party’s
control. A Force Majeure Event does not include an act of
negligence or intentional wrongdoing.”
26
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
6.5.2
6.6
If a Force Majeure Event prevents a Party from fulfilling any
obligations under this Agreement, the Party affected by the Force
Majeure Event (Affected Party) shall promptly notify the other
Party of the existence of the Force Majeure Event. The notification
must specify in reasonable detail the circumstances of the Force
Majeure Event, its expected duration, and the steps that the
Affected Party is taking to mitigate the effects of the event on its
performance, and if the initial notification was verbal, it should be
promptly followed up with a written notification. The Affected
Party shall keep the other Party informed on a continuing basis of
developments relating to the Force Majeure Event until the event
ends. The Affected Party will be entitled to suspend or modify its
performance of obligations under this Agreement (other than the
obligation to make payments) only to the extent that the effect of
the Force Majeure Event cannot be reasonably mitigated. The
Affected Party will use reasonable efforts to resume its
performance as soon as possible.
Default
6.6.1
No Default shall exist where such failure to discharge an obligation
(other than the payment of money) is the result of a Force Majeure
Event as defined in this Agreement, or the result of an act or
omission of the other Party. Upon a Default, the non-defaulting
Party shall give written notice of such Default to the defaulting
Party. Except as provided in Article 6.6.2, the defaulting Party
shall have 60 calendar days from receipt of the Default notice
within which to cure such Default; provided however, if such
Default is not capable of cure within 60 calendar days, the
defaulting Party shall commence such cure within 20 calendar days
after notice and continuously and diligently complete such cure
within six months from receipt of the Default notice; and, if cured
within such time, the Default specified in such notice shall cease to
exist.
6.6.2 If a Default is not cured as provided for in this Article, or if a
Default is not capable of being cured within the period provided
for herein, the non-defaulting Party shall have the right to
terminate this Agreement by written notice at any time until cure
occurs, and be relieved of any further obligation hereunder and,
whether or not that Party terminates this Agreement, to recover
from the defaulting Party all amounts due hereunder, plus all other
damages and remedies to which it is entitled at law or in equity.
The provisions of this Article will survive termination of this
Agreement.
27
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Article 7.
Insurance
General Liability Insurance coverage is not required under New Jersey’s
Net Metering regulations. However, the Customer still has responsibility
and/or liability for any damage(s) or injury(ies) caused by the Customergenerator Facility and/or the Customer’s Interconnection Facilities..
Article 8.
8.1
Miscellaneous
Governing Law, Regulatory Authority, and Rules
The validity, interpretation and enforcement of this Agreement and each
of its provisions shall be governed by the laws of the State of New Jersey,
without regard to its conflicts of law principles. This Agreement is subject
to all Applicable Laws and Regulations. Each Party expressly reserves the
right to seek changes in, appeal, or otherwise contest any laws, orders, or
regulations of a Governmental Authority.
8.2
Amendment
The Parties may amend this Agreement by a written instrument duly
executed by both Parties.
8.3
No Third-Party Beneficiaries
This Agreement is not intended to and does not create rights, remedies, or
benefits of any character whatsoever in favor of any persons, corporations,
associations, or entities other than the Parties, and the obligations herein
assumed are solely for the use and benefit of the Parties, their successors
in interest and where permitted, their assigns.
8.4
Waiver
8.4.1
The failure of a Party to this Agreement to insist, on any occasion,
upon strict performance of any provision of this Agreement will not be
considered a waiver of any obligation, right, or duty of, or imposed upon,
such Party.
8.4.2
Any waiver at any time by either Party of its rights with respect to
this Agreement shall not be deemed a continuing waiver or a waiver
with respect to any other failure to comply with any other obligation,
right, duty of this Agreement. Termination or default of this Agreement
for any reason by Customer shall not constitute a waiver of the
Customer’s legal rights to obtain an interconnection from PSE&G. Any
waiver of this Agreement shall, if requested, be provided in writing.
28
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
8.5
Entire Agreement
This Agreement, including all Attachments, constitutes the entire
Agreement between the Parties with reference to the subject matter hereof,
and supersedes all prior and contemporaneous understandings or
agreements, oral or written, between the Parties with respect to the subject
matter of this Agreement. There are no other agreements, representations,
warranties, or covenants which constitute any part of the consideration for,
or any condition to, either Party’s compliance with its obligations under
this Agreement.
8.6
Multiple Counterparts
This Agreement may be executed in two or more counterparts, each of
which is deemed an original but all constitute one and the same
instrument.
8.7
No Partnership
This Agreement shall not be interpreted or construed to create an
association, joint venture, agency relationship, or partnership between the
Parties or to impose any partnership obligation or partnership liability
upon either Party. Neither Party shall have any right, power or authority to
enter into any agreement or undertaking for, or act on behalf of, or to act
as or be an agent or representative of, or to otherwise bind, the other Party.
8.8
Severability
If any provision or portion of this Agreement shall for any reason be held
or adjudged to be invalid or illegal or unenforceable by any court of
competent jurisdiction or other Governmental Authority, (1) such portion
or provision shall be deemed separate and independent, (2) the Parties
shall negotiate in good faith to restore insofar as practicable the benefits to
each Party that were affected by such ruling, and (3) the remainder of this
Agreement shall remain in full force and effect.
8.9
Environmental Releases
Each Party shall notify the other Party, first orally and then in writing, of
the release any hazardous substances, any asbestos or lead abatement
activities, or any type of remediation activities related to the Customergenerator Facility or the Interconnection Facilities, each of which may
reasonably be expected to affect the other Party. The notifying Party shall
(1) provide the notice as soon as practicable, provided such Party makes a
good faith effort to provide the notice no later than 24 hours after such
Party becomes aware of the occurrence, and (2) promptly furnish to the
29
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
other Party copies of any publicly available reports filed with any
governmental authorities addressing such events.
8.10
Subcontractors
Nothing in this Agreement shall prevent a Party from utilizing the services
of any subcontractor as it deems appropriate to perform its obligations
under this Agreement; provided, however, that each Party shall require its
subcontractors to comply with all applicable terms and conditions of this
Agreement in providing such services and each Party shall remain
primarily liable to the other Party for the performance of such
subcontractor.
8.10.1 The creation of any subcontract relationship shall not relieve the
hiring Party of any of its obligations under this Agreement. The
hiring Party shall be fully responsible to the other Party for the acts
or omissions of any subcontractor the hiring Party hires as if no
subcontract had been made; provided, however, that in no event
shall PSE&G be liable for the actions or inactions of the Customer
or its subcontractors with respect to obligations of the Customer
under this Agreement. Any applicable obligation imposed by this
Agreement upon the hiring Party shall be equally binding upon,
and shall be construed as having application to, any subcontractor
of such Party.
8.10.2 The obligations under this Article will not be limited in any way by
any limitation of subcontractor’s insurance.
Article 9.
9.1
Notices
General
Unless otherwise provided in this Agreement, any written notice, demand,
or request required or authorized in connection with this Agreement
(“Notice”) shall be deemed properly given if delivered in person,
delivered by recognized national currier service, or sent by first class mail,
postage prepaid, to the person specified below:
If to Customer:
Customer: ____________________________________________
Attention: _________________________________
Address: __________________________________________________________
30
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
City: _______________________________ State:______________ Zip:_______
Phone: ________________ Fax: _________________
If to PSE&G:
Attention: _________________________________
Address: __________________________________________________________
City: _______________________________ State:______________ Zip:_______
Phone: ________________ Fax: _________________
31
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
9.2
Billing and Payment
Billings and payments shall be sent to the addresses set out below:
Customer: ____________________________________________
Attention: _________________________________
Address: __________________________________________________________
City: _______________________________ State:______________ Zip:_______
9.3
Designated Operating Representative
The Parties may also designate operating representatives to conduct the
communications which may be necessary or convenient for the
administration of this Agreement. This person will also serve as the point
of contact with respect to operations and maintenance of the Party’s
facilities.
Customer’s Operating
Representative:____________________________________________
Attention: _________________________________
Address: __________________________________________________________
City: _______________________________ State:______________ Zip:_______
Phone: ________________ Fax: _________________
PSE&G’s Operating Representative:
____________________________________________
Attention: ________________________________
Address: _________________________________________________________
City: _______________________________ State:______________ Zip:______
Phone: ________________ Fax: ________________
9.4
Changes to the Notice Information
32
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Either Party may change this information by giving five Business Days
written notice prior to the effective date of the change.
Article 10.
Signatures
IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed by their respective duly authorized representatives.
For PSE&G:
Name: ___________________________________________
Title: ____________________________________________
Date: ____________________________________________
For the Customer
Name: ___________________________________________
Title: ____________________________________________
Date: ____________________________________________
33
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Attachment 1
Glossary of Terms
Affected System – An electric system other than PSE&G’s Distribution System that may
be affected by the proposed interconnection.
Applicant – A person who has filed an application to interconnect a Customer-generator
Facility to PSE&G’s Distribution System, sometimes also referred to as the “Customer”.
Applicable Laws and Regulations – All duly promulgated applicable federal, State and
local laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or
judicial or administrative orders, permits and other duly authorized actions of any
Governmental Authority.
Business Day – Monday through Friday, excluding Federal Holidays.
Class I Renewable Energy – has the meaning assigned to this term in N.J.A.C. 14:4-8.2.
Customer – Any entity that proposes to interconnect its Customer-Generating Facility
with PSE&G’s Distribution System.
Customer-generator – A residential or small commercial customer that generates
electricity on the Customer's side of the meter, with a generating facility that does not
exceed 2 MW in size.
Customer-generator Facility – The Customer’s device for the production of electricity
identified in the Interconnection Application, but shall not include the Customer’s
Interconnection Facilities.
Default – The failure of a breaching Party to cure its Breach under the terms of this
Interconnection Agreement.
Distribution System – The PSE&G facilities and equipment used to deliver electricity
from transformation points on the Transmission System to points of connection at a
Customer's premises
Distribution Upgrades – The additions, modifications, and upgrades to PSE&G’s
Distribution System at or beyond the Point of Common Coupling to facilitate the
interconnection of the Customer-generator Facility. Distribution Upgrades do not include
Interconnection Facilities.
Equipment Package – A group of components connecting an electric generator with an
electric distribution system, and includes all interface equipment including switchgear,
inverters, or other interface devices. An equipment package may include an integrated
generator or electric source.
34
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Facilities Study – An engineering study conducted by PSE&G (in coordination with any
Affected System) to determine the required modifications to PSE&G’s Distribution
System, including the cost and the time require to build and install such modifications, as
necessary to accommodate an Interconnection Application.
Good Utility Practice – Has the same meaning as assigned to this term in the Amended
and Restated Operating Agreement of the PJM Interconnection (April 2005), as amended
and supplemented, which is incorporated herein by reference. The Operating Agreement
can be obtained on the PJM Interconnection website at www.pjm.com. As of April 28,
2005, the Operating Agreement defines this term as "any of the practices, methods and acts
engaged in or approved by a significant portion of the electric utility industry during the
relevant time period, or any of the practices, methods and acts which, in the exercise of
reasonable judgment in light of the facts known at the time the decision was made, could
have been expected to accomplish the desired result at a reasonable cost consistent with good
business practices, reliability, safety and expedition. Good Utility Practice is not intended to
be limited to the optimum practice, method, or act to the exclusion of all others, but rather is
intended to include acceptable practices, methods, or acts generally accepted in the region."
Governmental Authority – Any federal, State, local or other governmental regulatory or
administrative agency, court, commission, department, board, or other governmental
subdivision, legislature, rulemaking board, tribunal, or other governmental authority
having jurisdiction over the Parties, their respective facilities, or the respective services
they provide, and exercising or entitled to exercise any administrative, executive, police,
or taxing authority or power; provided, however, that such term does not include the
Customer, PSE&G or any affiliate thereof.
IEEE Standards – The standards published by the Institute of Electrical and Electronics
Engineers, available at www.ieee.org.
Impact Study – An assessment by PSE&G of (i) the adequacy of PSE&G’s Distribution
System to accommodate an Interconnection Application, (ii) whether any additional costs
may be incurred in order to accommodate an Interconnection Application, and (iii) with
respect to an Interconnection Application, an estimate of the Customer’s cost
responsibility for PSE&G’s Interconnection Facilities.
Interconnection Agreement – This agreement between the Customer-generator and
PSE&G, which governs the connection of the Customer-generator Facility to PSE&G’s
Distribution System, as well as the ongoing operation of the Customer-generator Facility
after it is connected to PSE&G’s system.
Interconnection Facilities – PSE&G’s Interconnection Facilities and the Customer’s
Interconnection Facilities. Collectively, Interconnection Facilities include all facilities
and equipment between the Customer-generator Facility and the Point of Common
Coupling, including any modification, additions or upgrades that are necessary to
physically and electrically interconnect the Customer-generator Facility to the PSE&G’s
Distribution System. Interconnection Facilities are sole use facilities and shall not include
Distribution Upgrades.
35
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Interconnection Application – The Customer’s request, in accordance with the Tariff, to
interconnect a new Customer-generator Facility, or to increase the capacity of, or make a
material modification to, the operating characteristics of an existing Customer-generator
Facility that is interconnected with PSE&G’s Distribution System.
Net Metering – A system of metering electricity in which PSE&G:
1. Credits a Customer-generator at the full retail rate for each kilowatt-hour
produced by a Class I renewable energy system not to exceed 2 MW in size,
installed on the Customer-generator’s side of the electric revenue meter, up to the
total amount of electricity used by that Customer during an annualized period; and
2. Compensates the Customer-generator at the end of the annualized period for any
remaining credits, at a rate equal to the electric supplier’s or BGS provider's
avoided cost of wholesale power.
NJBPU – The New Jersey Board of Public Utilities, or any such successor agency having
similar jurisdiction.
Operating Requirements – Any operating and technical requirements that may be
applicable due to PJM or PSE&G’s requirements, including those set forth in this
Interconnection Agreement.
Party or Parties – PSE&G, Customer or any combination of the two.
PJM or PJM Interconnection – the PJM Interconnection, L.L.C., or such successor
regional transmission organization to which PSE&G is electrically connected and
coordinates operations with.
Point of Common Coupling – Has the same meaning as assigned to this term in IEEE
Standard 1547 Section 3.0 (published July 2003), as amended and supplemented, which
is incorporated herein by reference. IEEE standard 1547 can be obtained through the
IEEE website at www.ieee.org. IEEE Standard 1547 Section 3.0 defined this term as
"the point in the interconnection of a Customer-generator Facility with an electric
distribution system at which the harmonic limits are applied."
PSE&G – The Public Service Electric and Gas Company, an electric public utility as the
term is defined in N.J.S.A. 48:2-13, that transmits or distributes electricity to end users
within New Jersey.
Tariff – The PSE&G electric Tariff and its Standard Terms and Conditions as filed with
the NJBPU, and as amended or supplemented from time to time, or any successor tariff.
Transmission Owner – PSE&G, unless referring to the owner of transmission facilities
in an Affected System.
36
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Transmission System – The facilities owned, controlled or operated by PSE&G or
another Transmission Owner that are used to provide transmission service under the PJM
Open Access Transmission Tariff.
37
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Attachment 2
One-line Diagram Depicting the Customer-generator Facility, Interconnection
Facilities, Metering Equipment, and Upgrades
38
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Attachment 3
Description, Costs and Time Required to Build and Install PSE&G’s
Interconnection Facilities
PSE&G’s Interconnection Facilities shall be itemized and a best estimate itemized cost,
including overheads, of the cost of its Interconnection Facilities will be provided from the
Facilities Study.
Also, and a best estimate for the time required to build and install PSE&G’s
Interconnection Facilities will be provided from the Facilities Study.
39
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Attachment 4
Additional Operating Requirements for PSE&G’s
Distribution System and Affected Systems Needed to Support
the Customer’s Needs
If required, PSE&G shall also provide requirements that must be met by the Customer
prior to initiating parallel operation with PSE&G’s Distribution System, as listed below.
40
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Interconnection Application
and
Terms and Conditions
for
Units Over 10 kW up to 2,000 kW
Level 3
General Information
The following process and procedures were developed in accordance with New
Jersey Administrative Code (“N.J.A.C.”) Section 14:4-9, the “Net Metering and
Interconnection Standards for Class I Renewable Energy Systems.” Additional details
may be seen in Public Service Electric and Gas PSE&G’s (“PSE&G’s”) “Information and
Requirements for Electric Service” document, which is generally known to all electrical
contractors doing business in PSE&G’s service area, and is available from any PSE&G
Wiring Inspection Department.
To qualify for Net Metering, a Customer must meet the following conditions:
a. Will generate electricity on the customer’s side of the meter using a Class 1
renewable energy resource as defined in N.J.A.C. 14:4-9.2;
b. Has an annual peak demand or peak load contribution, before accounting for
the effects of the Customer’s generating system, that is less than 10
megawatts;
c. Has a generating system sized no larger than what is allowed in N.J.A.C. 14.49.3(a) for the Customer’s residence or facility, as applicable;
d. Has a generating system that is limited to a maximum size of 2,000 Kilowatts;
and
e. Meets all other requirements of N.J.A.C. 14:4-9.
Please refer to PSE&G’s Tariff and the general terms and conditions for net
metering for additional information on applicable rates
1.0 Application Process:
a. Prior to the electrical contractor or solar installer beginning installation,
Customer submits this Interconnection Application (“Application”) to PSE&G
filled out completely.
1
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
b. PSE&G evaluates the Application for completeness and notifies the Customer
within 3 business days of receipt of the Application whether or not it is
complete and, if not, advises the Customer of what is incomplete or missing in
the Application.
c. Customer’s solar installer or electrical contractor must (i) contact PSE&G’s
local Wiring Inspection Department, (ii) complete the Application for Wiring
Inspection, and (iii) obtain a DWMS job number prior to submitting such
Application for Wiring Inspection.
d. PSE&G shall conduct an initial review of the application and shall offer the
Customer an opportunity to meet with PSE&G staff to discuss the application.
At the meeting, PSE&G shall provide pertinent information to the Customer,
such as the available fault current at the proposed interconnection location, the
existing peak loading on the lines in the general vicinity of the Customergenerator Facility, and the configuration of the distribution lines at the
proposed Point of Common Coupling.
e. PSE&G shall provide an Impact Study Agreement to the Customer, attached
as Appendix 3, which shall include a good faith cost estimate of the cost for
an Impact Study to be performed by PSE&G. The Impact Study is an
engineering analysis of the probable impact of the Customer-generator
Facility on the safety and reliability of PSE&G's electric distribution system.
The Impact Study shall be conducted in accordance with Good Utility
Practice, and shall:
1. Detail the impacts to PSE&G’s electric distribution system that
would result if the Customer-generator Facility was interconnected
without modifications to PSE&G’s electric distribution system;
2. Identify any modifications to PSE&G’s electric distribution system
that would be necessary to accommodate the proposed
interconnection; and
3. Focus on power flows and utility protective devices, including
control requirements.
f. If the proposed interconnection may affect electric transmission or delivery
systems other than that controlled by PSE&G (“Affected Systems”), operators
of these other systems may require additional studies to determine the
potential impact of the interconnection on these systems. If such additional
studies are required, PSE&G shall coordinate the studies but shall not be
responsible for their timing. The Customer shall be responsible for the costs
of any such additional studies required by an Affected System. Such studies
shall be conducted only after the Customer has provided written authorization.
After the Customer has executed the Impact Study Agreement and has paid
2
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
PSE&G the amount of the good faith estimate required under (e) above,
PSE&G shall conduct the Impact Study and shall notify the Customer of the
results as follows:
1. If the Impact Study indicates that only minor modifications to
PSE&G’s electric distribution system are necessary to accommodate
the proposed interconnection, PSE&G shall send the Customer an
Interconnection Agreement, attached as Appendix 6, that details the
scope of the necessary modifications and an estimate of their cost; or
2. If the Impact Study indicates that substantial modifications to
PSE&G’s electric distribution system are necessary to accommodate
the proposed interconnection, PSE&G shall provide an estimate of
the cost of the modifications, which, barring unknown conditions,
shall be accurate to within plus or minus 25%. In addition, PSE&G
shall offer to conduct a Facilities Study at the Customer's expense,
which will identify the types and costs of equipment needed to safely
interconnect the Customer-generator Facility.
g. If a Customer requests a Facilities Study under (f)(2) above, PSE&G shall
provide a Facilities Study Agreement, attached as Appendix 4. The Facilities
Study Agreement shall describe the work to be undertaken in the Facilities
Study and shall include a good faith estimate of the cost to the Customer for
completion of the study. Upon the execution by the Customer of the Facilities
Study Agreement, PSE&G shall conduct a Facilities Study, which shall: (i)
identify the facilities necessary to safely interconnect the Customer-generator
Facility with PSE&G's electric distribution system; (ii) the cost of those
facilities; and, (iii) the time required to build and install those facilities, based
upon the Customer’s estimated construction schedule.
h. Upon completion of the Facilities Study, PSE&G shall provide the Customer
with the results of the study and an executable Interconnection Agreement.
The Agreement shall list the conditions and facilities necessary for the
Customer-generator Facility to safely interconnect with PSE&G's electric
distribution system, as determined by the Facilities Study.
i. If the Customer wishes to interconnect, it shall: (i) execute the Interconnection
Agreement; (ii) provide a deposit of 50% of the cost of the PSE&G facilities
identified in the Facilities Study; (iii) complete installation of the Customergenerator Facility; and, (iv) agree to pay PSE&G the actual amount expended
to design, construct, and commission the PSE&G facilities needed to
interconnect the Customer-generator Facility, less the amount of the up-front
deposit.
j. After installation, the local electrical inspection authority having jurisdiction
must inspect the work, and submit a Certificate of Approval to the local
3
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
PSE&G Wiring Inspection Department. Within 15 business days after notice
from the Customer that the Customer-generator Facility has been installed,
and receipt of the Certificate of Approval, PSE&G shall inspect the Customergenerator Facility and shall arrange to witness any of the Customer’s
commissioning tests required under IEEE Standard 1547 (“Witness Test”).
PSE&G and the Customer shall select a date by mutual agreement for PSE&G
to witness commissioning tests.
k. Provided that the Customer-generator Facility passes any required
commissioning tests satisfactorily, PSE&G shall notify the Customer in
writing as per (m) below, within three business days after the tests, of one of
the following:
l. The interconnection is approved and the Customer-generator Facility
may begin operation; or
2. The Facilities Study identified necessary PSE&G construction that
has not been completed, the estimated date upon which the
construction will be completed and the estimated date when the
Customer-generator Facility may begin operation.
l. If the commissioning tests are not satisfactory, the Customer-generator shall
repair or replace the unsatisfactory equipment and reschedule a
commissioning test pursuant to (j) above.
m. Provided that the Customer-generator Facility now passes any required
commissioning tests satisfactorily, PSE&G then notifies the Customer in
writing that interconnection of the Customer’s facility is authorized by
sending a signed copy of the Certificate of Completion to the Customer. If no
Witness Test is satisfactory, PSE&G has the right to disconnect the
Customer’s facility. The Customer has no right to operate in parallel until a
Witness Test has been successfully performed. PSE&G will not attend the
Witness Test until receipt of another Certificate of Approval, if re-inspection
was required by the jurisdictional inspection authority.
2.0 Contact Information:
Customer must provide the contact information for the legal Customer (i.e. the
Customer-generator as defined in N.J.A.C. 14:4-9). If another party is responsible for
interfacing with PSE&G, you should provide that contact information as well.
3.0 Ownership Information:
Please enter the legal names of the owner or owners of the Customer’s facility
(i.e. the Customer-generator Facility as defined in N.J.A.C. 14:4-9), including their
percentage ownership.
4
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
4.0 Customer-Generator Facility Certification Requirements:
To qualify under this specific Application process, the Customer-Generator’s applicable
equipment must be:
UL1741 Listed - This standard (“Inverters, Converters, and Controllers for Use in
Independent Power Systems”) addresses the electrical interconnection design of various
forms of generating equipment. Many manufacturers choose to submit their equipment
to a Nationally Recognized Testing Laboratory (“NRTL”) that verifies compliance with
UL1741. This “listing” is then marked on the equipment and supporting documentation.
IEEE 1547 Compliant - This standard (“Interconnecting Distributed Resources
with Electric Power Systems”) contains additional requirements for the design of
distributed generation equipment, and includes requirements for installation
practices and testing. (IEEE 1547 includes, by reference, IEEE 929.)
5.0 Interconnection Fees in accordance with N.J.A.C. 14:4-9.10:
For a Level 3 interconnection review, PSE&G shall charge a fee of $100 plus $2
per kilowatt of the Customer-Generator Facility's capacity, as well as charges for actual
time spent on any Impact and/or Facilities Studies required under N.J.A.C. 14:4-9.9.
Costs for engineering work done as part of an Impact Study or Facilities Study shall not
exceed $100 per hour. If PSE&G must install facilities in order to accommodate the
interconnection of the Customer-generator Facility, the cost of such facilities shall be the
responsibility of the Applicant. Level 3 projects utilize the Interconnection Agreement
attached to the Interconnection Application as Appendix 6.
5
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Appendix 2
Interconnection Application
for
Customer-generator Facilities
Greater than 10 kVA up to 2,000 kVA
Customer:
Name: _____________________________ Phone: (___)__________
Address:_____________________________ Municipality: ________________
Consulting Engineer or Contractor:
Name: _____________________________ Phone: (___)__________
Address:_____________________________
Estimated In-Service Date: ________________________________
Existing Electric Service:
Capacity: __________Amps Voltage: __________Volts
Service Character:
Single Phase
3 Phase Transformer Connection
Three Phase Secondary
Wye
Delta
Location of Protective Interface Equipment on Property:
(include address if different from customer address)
IEEE 1547 Listed?
Yes
No
(If yes, attach manufacturer’s cut
sheet showing IEEE 1547 listing)
UL 1741 Listed?
Yes
No
(If yes, attach manufacturer’s cut
sheet showing UL 1741 listing)
6
Energy Producing Equipment/Inverter Information:
Manufacturer: ____________________________________________
Model No. ________________ Version No. ____________________
Synchronous
Induction
Inverter
Other _________
Rating: __________ kW
Rating: __________ kVA
Rated Output: VA Rated Voltage: Volts
Rate Frequency: Hertz Rated Speed: RPM
Efficiency: % Power Factor: ________ %
Rated Current: Amps Locked Rotor Current: Amps
Synchronous Speed: RPM Winding Connection:
Min. Operating Freq./Time:
Generator Connection:
Delta
Wye
Wye Grounded
Yes
No; attach product
System Type Tested (Total System):
literature
Yes
No
One Line Diagram attached:
Yes
No
Installation Test Plan attached:
For Synchronous Machines:
Submit copies of the Saturation Curve and the Vee Curve
Salient
Non-Salient
Torque: _____lb-ft Rated RPM: _______ Field Amperes: ________ at rated
generator voltage and current and ________% PF over-excited
Type of Exciter: ________________________________________________
Output Power of Exciter: _________________________________________
Type of Voltage Regulator: _______________________________________
Direct-axis Synchronous Reactance (Xd) _______ohms
Direct-axis Transient Reactance
(X'd) _______ohms
Direct-axis Sub-transient Reactance (X"d) _______ohms
For Induction Machines:
Rotor Resistance (Rr)_____ohms Exciting Current ____Amps
Rotor Reactance (Xr)_____ohms Reactive Power Required:
Magnetizing Reactance (Xm)_____ohms ___VARs (No Load)
Stator Resistance (Rs)_____ohms ___VARs (Full Load)
Stator Reactance (Xs)_____ohms
Short Circuit Reactance (X"d)_____ohms
Phases:
Single
Three-Phase
O
Frame Size: ____________ Design Letter: ____ Temp. Rise: ____________ C.
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
For Inverters:
Manufacturer:_______________________ Model: ____________________
Forced Commutated
Line Commutated
Type:
Rated Output _________ Amps ________ Volts
Efficiency ________%
Customer Signature:
_____________________________ __________________________
CUSTOMER
TITLE
8
_________
DATE
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Appendix 3
Impact Study Agreement
This Impact Study Agreement (“Agreement”) is made and entered into this ___
day of ______ by and between __________________, a _____________ organized and
existing under the laws of the State of _____________, (‘‘Customer,’’) and Public
Service Electric and Gas PSE&G, a company existing under the laws of the State of New
Jersey, (‘‘PSE&G’’). Customer and PSE&G each may be referred to as a ‘‘Party,’’ or
collectively as the ‘‘Parties.’’
Recitals:
Whereas, Customer is proposing to develop a Customer-generator Facility or
generating capacity addition to an existing Customer-generator Facility consistent with
the Interconnection Application completed by Customer on ________________; and
Whereas, Customer desires to interconnect the Customer-generator Facility with
PSE&G’s Distribution System;
Whereas, PSE&G has completed an initial review and provided the results of
said study to Customer; and
Whereas, Customer has requested PSE&G to perform an Impact Study to assess
the impact of interconnecting the Customer-generator Facility to PSE&G’s Distribution
System;
Now, therefore, in consideration of and subject to the mutual covenants
contained herein the Parties agreed as follows:
1.0
When used in this Agreement, with initial capitalization, the terms specified shall
have the meanings indicated. Terms used in this Agreement with initial
capitalization but not defined in this Agreement shall have the meanings specified
in Attachment 1 of the Customer-generator Interconnection Agreement.
2.0
Customer elects and PSE&G shall cause to be performed an Interconnection
System Impact Study consistent with Section (e) of the Interconnection
Application.
3.0
The scope of this Impact Study shall be subject to the assumptions set forth in
Attachment A to this Agreement.
4.0
The Impact Study will be based upon the results of the initial review and the
technical information provided by Customer in the Interconnection Application.
PSE&G reserves the right to request additional technical information from
Customer as may become reasonably necessary consistent with Good Utility
Practice during the course of the Impact Study. If Customer modifies its
9
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
designated Point of Common Coupling, Interconnection Application, or the
technical information provided therein is modified, the time to complete the
Impact Study may be extended.
5.0
The Impact Study report shall provide the following information:
a)
Identification of any required minor modifications necessary to allow for
the interconnection of the Customer-generator Facility; and
b)
Description and non-binding, good faith estimated cost of facilities
required to interconnect the Customer-generator Facility to PSE&G’s
Distribution System and to address the identified minor modifications
required.
c)
An Impact Study shall include the following elements, as applicable:
1.
2.
3.
4.
5.
6.
7.
Load flow study;
Short-circuit study;
Circuit protection and coordination study;
Impact on the operation of PSE&G’s electric distribution system;
Stability study (and the conditions that would justify including this
element in the Impact Study);
Voltage collapse study (and the conditions that would justify
including this element in the Impact Study); and
Additional elements, if approved in writing by Board staff prior to
the Impact Study.
6.0
PSE&G requires an up-front deposit of the good faith estimated study costs.
7.0
The Impact Study shall be completed based on a mutually agreed upon schedule,
unless the schedule is extended due to additional information being required from
the Customer during the course of the study.
8.0
Study fees shall be based on actual costs and will be invoiced to Customer within
ninety (90) days from when the study is transmitted to Customer.
9.0
Customer shall pay any actual study costs that exceed the deposit without interest
within thirty (30) calendar days of receipt of the invoice. PSE&G shall refund any
excess amount without interest within thirty (30) calendar days of the invoice.
In witness whereof, the Parties have caused this Agreement to be duly executed
by their duly authorized officers or agents on the day and year first above written.
PSE&G Signature:
Title:
Date:
Customer Signature:
Title:
Date:
10
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Attachment A to Impact Study Agreement
Assumptions Used in Conducting the Impact Study
The Impact Study shall be based upon the results of PSE&G’s initial review, subject to
any modifications, and the following assumptions:
(1) Designation of Point of Common Coupling and configuration to be studied.
(2) Designation of alternative Points of Common Coupling and configuration.
Items (1) and (2) are to be completed by Customer. Other assumptions (listed below) are
to be provided by Customer and PSE&G.
11
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Appendix 4
Facilities Study Agreement
This Facilities Study Agreement (“Agreement”) is made and entered into this ___
day of ______ by and between __________________, a _____________ organized and
existing under the laws of the State of _____________, (‘‘Customer,’’) and Public
Service Electric and Gas Company, a company existing under the laws of the State of
New Jersey, (‘‘PSE&G’’). Customer and PSE&G each may be referred to as a ‘‘Party,’’
or collectively as the ‘‘Parties.’’
Recitals:
Whereas, Customer is proposing to develop a Customer-generator Facility or
generating capacity addition to an existing Customer-generator Facility consistent with
the Interconnection Application completed by Customer on _______________; and
Whereas, Customer desires to interconnect the Customer-generator Facility with
PSE&G’s Distribution System;
Whereas, PSE&G has completed an Impact Study and provided the results of
said study to Customer; and
Whereas, Customer has requested PSE&G to perform a Facilities Study to
specify and estimate the cost of the equipment, engineering, procurement and
construction work needed to implement the conclusions of the Impact Study, in
accordance with Good Utility Practice, in order to physically and electrically connect the
Customer-generator Facility to PSE&G’s Distribution System.
Now, therefore, in consideration of and subject to the mutual covenants
contained herein the Parties agreed as follows:
1.0
When used in this Agreement, with initial capitalization, the terms specified shall
have the meanings indicated. Terms used in this Agreement with initial
capitalization but not defined in this Agreement shall have the meanings specified
in Attachment 1 of the Customer-generator Interconnection Agreement.
2.0
Customer elects and PSE&G shall cause an Interconnection Facilities Study
consistent with Section (g) of the Interconnection Application.
3.0
The scope of the Facilities Study shall be subject to data provided in Attachment
A to this Agreement.
4.0
The Facilities Study report shall: (i) provide a description of the PSE&G facilities
required; (ii) the estimated cost of such facilities (consistent with Attachment A);
(iii) a schedule for installation of PSE&G’s required facilities to interconnect the
12
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Customer-generator Facility to PSE&G’s Distribution System; and (iv) shall
address the short circuit, instability, and power flow issues identified in the
Impact Study.
5.0
PSE&G requires an up-front deposit of the good faith estimated study costs.
6.0
In cases where no additional information is required from the Customer, the
Facilities Study shall be completed and the results shall be transmitted to
Customer on a mutually agreed upon schedule
7.0
Study fees shall be based on actual costs and will be invoiced to Customer after
the study is transmitted to Customer.
8.0
Customer shall pay any actual study costs that exceed the deposit without interest
within thirty (30) Calendar Days from receipt of the invoice. PSE&G shall refund
any excess amount without interest within thirty (30) Calendar Days of the
invoice.
In witness whereof, the Parties have caused this Agreement to be duly executed
by their duly authorized officers or agents on the day and year first above written.
PSE&G Signature:
Title:
Date:
Customer Signature:
Title:
Date:
13
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Attachment A to Facilities Study Agreement
Data To Be Provided by Customer With the Facilities Study Agreement
1) Provide location plan and simplified one-line diagram of the Customer-generator
Facility and Interconnection Facilities. For staged projects, please indicate future
generation, etc.
2) On the one-line diagram, indicate the generation capacity attached at each
metering location. (Maximum load on CT/PT)
3) On the one-line diagram, indicate the location of auxiliary power. (Minimum load
on CT/PT) Amps
4) One set of metering is required for each generation connection to a new ring bus
or existing PSE&G station. Number of generation connections: ________
5) Will an alternate source of auxiliary power be available during CT/PT
maintenance? Yes
No
6) Will a transfer bus on the generation side of the metering require that each meter
set be designed for the total plant generation? Yes
No
(Please indicate on
the one-line diagram).
7) What type of control system or PLC will be located at the Customer-generator
Facility?
_______________________________________________________________
8) What protocol does the control system or PLC use? ____________________
9) Please provide a 7.5-minute quadrangle map of the site. Indicate the Customergenerator Facility and Interconnection Facilities, and property lines.
10) Physical dimensions of the proposed Customer-generator Facility and
Interconnection Facilities substation: ________________
11) Bus length from generation to interconnection station: ____________________
12) Interconnection Facilities line length from Customer-generator Facility to
PSE&G’s Distribution System. ______________________
13) Nearest distribution pole tag number observed in the field.: ________________
14) Number of third party easements required for Distribution lines*:
__________________
* To be completed in coordination with PSE&G.
14
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
15) Is the Customer-generator Facility located solely in PSE&G’s service area?
Yes
No
If No, please provide name of other provider:
__________________
16) Please provide the following proposed schedule dates:
Begin Construction Date: ________________
Generator step-up transformers receive back feed power Date: _______________
Generation Testing Date: _________________
Commercial Operation Date: ___________________
15
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Appendix 5
Certificate of Completion
Installation Information:
Check if owner-installed
Customer-generator: _________________________Contact Person:
Mailing Address:
Location of Facility (if different from above):
______________________________________________________
City:
State:
Telephone (Daytime):
(Evening):
Facsimile Number:
E-Mail Address:
Zip Code:
Electrical Contractor:
Name:
Mailing Address:
City:
State:
Telephone (Daytime):
(Evening):
Facsimile Number:
E-Mail Address:
Zip Code:
License number: ____________________________________
Date Interconnection Application was approved by the PSE&G:
_______________________
Application ID number: ______________________________
Electrical Inspection:
The system has been installed and inspected in compliance with the local
Building/Electrical Code of
(appropriate governmental authority)
Signed (Local Electrical Wiring Inspector, or attach signed electrical inspection):
___________________________
Name (printed):
Date: ___________
16
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Person/Entity Installing the Customer-generator Facility:
Name:___________________________
PSE&G:___________________________________
Mailing Address:
City:
State:
Zip Code:
Telephone (Daytime):
(Evening):
Facsimile Number:
E-Mail Address:
As a condition of interconnection you are required to send/fax a copy of this form along
with a copy of the signed electrical permit to (insert the PSE&G associate’s name below):
Name: _____________________
PSE&G
Mail 1:_____________________
Mail 2:_____________________
City, State ZIP: ______________
Fax No.:
_____
Final Approval of Interconnection Application
The Certificate of Completion has been received and final approval to interconnect the
Customer-generator Facility is granted.
PSE&G Signature:
Title:
17
Date:
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Appendix 6
CUSTOMER-GENERATOR
INTERCONNECTION AGREEMENT
(For Customer-Generator Facilities No Larger Than 2 MW)
18
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
STANDARD CUSTOMER-GENERATOR INTERCONNECTION AGREEMENT
FOR INTERCONECTION OF NEW CUSTOMER-GENERATOR FACILITIES
WITH A CAPACITY OF 2 MVA OR LESS
This Agreement is made and entered into this ___ day of ______ by and between
__________________, a _____________ organized and existing under the laws of the
State of _____________, (‘‘Customer,’’) and Public Service Electric and Gas, a company
existing under the laws of the State of New Jersey, (‘‘PSE&G’’). Customer and PSE&G
each may be referred to as a ‘‘Party,’’ or collectively as the ‘‘Parties.’’
Recitals:
Whereas, Customer is proposing to develop a Customer-generator Facility, or
generating capacity addition to an existing Customer-generator Facility, consistent
with the Interconnection Application completed by Customer on
________________; and
Whereas, Customer desires to interconnect the Customer-generator with PSE&G’s
Distribution System;
Whereas, PSE&G has completed an initial review and provided the results of said
review to Customer;
Whereas, Customer requested PSE&G to perform an Impact Study to assess the
impact of interconnecting the Generating Facility to PSE&G’s Distribution System;
Now, therefore, in consideration of and subject to the mutual covenants contained
herein, the Parties agreed as follows:
Article 1.
Scope and Limitations of Agreement
1.1
This Agreement shall be used for all Interconnection Applications
submitted under the terms of the New Jersey Administrative Code
(“N.J.A.C.”) Section 14:4-9, the “Net Metering and
Interconnection Standards for Class I Renewable Energy Systems,”
except for those submitted under the Level I application process
outlined in such regulations for 10 kW and under inverter-based
projects.
1.2
This Agreement governs the terms and conditions under which the
Customer-generator Facility will interconnect to, and operate in
parallel with, PSE&G’s Distribution System.
1.3
This Agreement does not constitute an agreement to purchase or
deliver the Customer’s power.
19
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
1.4
1.5
Nothing in this Agreement is intended to affect any other
agreement between PSE&G and the Customer.
Responsibilities of the Parties
1.5.1 The Parties shall perform all obligations of this Agreement
in accordance with all Applicable Laws and Regulations,
Operating Requirements, and Good Utility Practice.
1.5.2
The Customer shall construct, interconnect, operate and
maintain its Customer-generator Facility, and construct,
operate, and maintain its Interconnection Facilities in
accordance with the applicable manufacturer’s
recommended maintenance schedule, in accordance with
this Agreement, and with Good Utility Practice.
1.5.3 PSE&G shall construct, own, operate, and maintain its
Distribution System and Interconnection Facilities in
accordance with this Agreement, and with Good Utility
Practice.
1.5.4 The Customer agrees to construct its facilities or systems in
accordance with applicable specifications that meet or
exceed those provided by the National Electrical Code,
National Electrical Safety Code, the American National
Standards Institute, IEEE, Underwriters Laboratories, any
Operating Requirements in effect at the time of
construction, and other applicable national and State codes
and standards. The Customer agrees to design, install,
maintain, and operate its Customer-generator Facility so as
to reasonably minimize the likelihood of a disturbance
adversely affecting or impairing the system or equipment of
PSE&G or Affected Systems.
1.5.5
Each Party shall operate, maintain, repair, and inspect, and
shall be fully responsible for the facilities that it now or
subsequently may own unless otherwise specified in the
Attachments to this Agreement. Each Party shall be
responsible for the safe installation, maintenance, repair
and condition of their respective lines and appurtenances on
their respective sides of the point of change of ownership.
PSE&G and the Customer, as appropriate, shall provide
Interconnection Facilities that adequately protect PSE&G’s
Distribution System, personnel, and other persons from
damage and injury. The allocation of responsibility for the
design, installation, operation, maintenance and ownership
20
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
of Interconnection Facilities shall be delineated in the
Attachments to this Agreement.
1.5.6 PSE&G shall coordinate with any Affected Systems to
support the interconnection as contemplated under the
terms of the New Jersey Administrative Code (“N.J.A.C.”)
Section 14:4-9(d).
1.6
Parallel Operation Obligations
Once the Customer-generator Facility has been authorized to commence
parallel operation, the Customer shall abide by all pertinent rules and
procedures pertaining to the parallel operation of the Customer-generator
Facility, including, but not limited to; 1) the rules and procedures
concerning the operation of generation set forth in the Tariff or by
PSE&G’s Distribution System operations personnel; and, 2) any
Operating Requirements set forth in Attachment 3 of this Agreement.
1.7
Metering
The Customer shall be responsible for the cost for the purchase,
installation, operation, maintenance, testing, repair, and replacement of
metering and data acquisition equipment specified in Attachments 2 and 3
of this Agreement.
1.8
Reactive Power
The Customer shall design its Customer-generator Facility to maintain a
composite power delivery at continuous rated power output at the Point of
Common Coupling at a power factor within the range of 0.95 leading to
0.95 lagging, unless PSE&G has established different requirements that
apply to all similarly situated generators in the control area on a
comparable basis. The requirements of this paragraph shall not apply to
wind generators.
1.9
Capitalized Terms
Capitalized terms used herein shall have the meanings specified in the
Glossary of Terms in Attachment 1 or the body of this Agreement.
Article 2.
2.1
Inspection, Testing, Authorization, and Right of Access
Equipment Testing and Inspection
The Customer shall test and inspect its Customer-generator Facility and
Interconnection Facilities prior to interconnection, and in accordance with
21
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
the requirements of IEEE 1547.1. The Customer shall notify PSE&G of
such activities no fewer than fifteen (15) days (or as may be agreed to by
the Parties) prior to such testing and inspection. Testing and inspection
shall occur on a Business Day. The PSE&G may, at its own expense, send
qualified personnel to the Customer-generator Facility site to inspect the
interconnection and observe the testing. The Customer shall provide
PSE&G a written test report when such testing and inspection is
completed.
2.2
Authorization Required Prior to Parallel Operation
The Customer shall not operate its Customer-generator Facility in parallel
with PSE&G’s Distribution System without prior written authorization of
PSE&G. PSE&G will provide such authorization once PSE&G receives
notification that the Customer has complied with all applicable parallel
operation requirements. Such authorization shall not be unreasonably
withheld, conditioned, or delayed.
2.3
Right of Access
2.3.1 Upon reasonable notice, PSE&G may send a qualified person to
the premises of the Customer to inspect the interconnection, and
observe the commissioning of the Customer-generator Facility
(including any required testing), startup, and operation for a period
of up to three Business Days after initial start-up of the unit. In
addition, the Customer shall notify PSE&G at least fifteen (15)
days prior to conducting any on-site verification testing of the
Customer-generator Facility.
2.3.2
Article 3.
3.1
Following the initial inspection process described above, at
reasonable hours, and upon reasonable notice, or at any time
without notice in the event of an emergency or hazardous
condition, PSE&G shall have access to the Customer’s premises
for any reasonable purpose in connection with the performance of
the obligations imposed on it by this Agreement or if necessary to
meet its legal obligation to provide service to other customers.
Effective Date, Term, Termination, and Disconnection
Effective Date
This Agreement shall become effective upon execution by the Parties.
3.2
Term of Agreement
22
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
This Agreement shall become effective on the Effective Date and shall
remain in effect for a period of ten years from the Effective Date or such
other longer period as the Customer may request and shall be
automatically renewed for each successive one-year period thereafter,
unless terminated earlier in accordance with Article 3.3 of this Agreement.
3.3
Termination
No termination shall become effective until the Parties have complied with
all Applicable Laws and Regulations applicable to such termination,
including the filing with the NJBPU of a notice of termination of this
Agreement (if required.
3.3.1
The Customer may terminate this Agreement at any time by giving
PSE&G 20 Business Days written notice.
3.3.2
Either Party may terminate this Agreement after Default pursuant
to Article 6.6.
3.3.3
Upon termination of this Agreement, the Customer-generator
Facility will be disconnected from PSE&G’s Distribution System.
The termination of this Agreement shall not relieve either Party of
its liabilities and obligations, owed or continuing at the time of the
termination.
3.3.4 This provisions of this Article shall survive termination or
expiration of this Agreement.
3.4
Temporary Disconnection
Temporary disconnection shall continue only for so long as reasonably
necessary under Good Utility Practice.
3.4.1
Emergency Conditions—“Emergency Condition” shall mean a
condition or situation: (1) that in the judgment of the Party making
the claim is imminently likely to endanger life or property; or (2)
that, in the case of PSE&G, is imminently likely (as determined in
a non-discriminatory manner) to cause a material adverse effect on
the security of, or damage to the Distribution System, PSE&G’s
Interconnection Facilities or any Affected Systems; or (3) that, in
the case of the Customer, is imminently likely (as determined in a
non-discriminatory manner) to cause a material adverse effect on
the security of, or damage to, the Customer-generator Facility or
the Customer’s Interconnection Facilities. Under Emergency
Conditions, PSE&G may immediately suspend interconnection
23
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
service and temporarily disconnect the Customer-generator
Facility. PSE&G shall notify the Customer promptly when it
becomes aware of an Emergency Condition that may reasonably be
expected to affect the Customer’s operation of the Customergenerator Facility. The Customer shall notify PSE&G promptly
when it becomes aware of an Emergency Condition that may
reasonably be expected to affect PSE&G’s Distribution System or
other Affected Systems. To the extent information is known, the
notification shall describe the Emergency Condition, the extent of
the damage or deficiency, the expected effect on the operation of
both Parties’ facilities and operations, its anticipated duration, and
the necessary corrective action.
3.4.2
Routine Maintenance, Construction, and Repair - PSE&G may
interrupt interconnection service or curtail the output of the
Customer-generator Facility and temporarily disconnect the
Customer-generator Facility from PSE&G’s Distribution System
when necessary for routine maintenance, construction, and repairs
on PSE&G’s Distribution System. PSE&G shall provide the
Customer with five Business Days notice prior to such
interruption. PSE&G shall use reasonable efforts to coordinate
such reduction or temporary disconnection with the Customer.
3.4.3
Forced Outages - During any forced outage, PSE&G may suspend
interconnection service to effect immediate repairs on PSE&G’s
Distribution System. PSE&G shall use reasonable efforts to
provide the Customer with prior notice. If prior notice is not given,
PSE&G shall, upon request, provide the Customer written
documentation after the fact explaining the circumstances of the
disconnection.
3.4.4
Adverse Operating Effects - PSE&G shall notify the Customer as
soon as practicable if, based on Good Utility Practice, operation of
the Customer-generator Facility may cause disruption or
deterioration of service to other customers served from the same
electric system, or if operating the Customer-generator Facility
could cause damage to PSE&G’s Distribution System or Affected
Systems. Supporting documentation used to reach the decision to
disconnect shall be provided to the Customer upon request. If, after
notice, the Customer fails to remedy the adverse operating effect
within a reasonable time, PSE&G may disconnect the Customergenerator Facility. PSE&G shall provide the Customer with five
Business Day notice of such disconnection, unless the provisions
of Article 3.4.1 apply.
24
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
3.4.5
3.4.6
Article 4.
4.1
Modification of the Customer-generator Facility - The Customer
must receive written authorization from PSE&G before making
any change to the Customer-generator Facility that may have a
material impact on the safety or reliability of the Distribution
System. Such authorization shall not be unreasonably withheld.
Modifications shall be done in accordance with Good Utility
Practice. If the Customer makes such modification without
PSE&G’s prior written authorization, the latter shall have the right
to temporarily disconnect the Customer-generator Facility.
Reconnection - The Parties shall cooperate with each other to
restore the Customer-generator Facility, Interconnection Facilities,
and PSE&G’s Distribution System to their normal operating state
as soon as reasonably practicable following a temporary
disconnection.
Cost Responsibility for Interconnection Facilities and Distribution
Upgrades
Interconnection Facilities
4.1.1 The Customer shall pay for the cost of the Interconnection
Facilities itemized in Attachment 2 of this Agreement. If a
Facilities Study was performed, PSE&G shall identify its
Interconnection Facilities necessary to safely interconnect the
Customer-generator Facility with PSE&G’s Distribution System,
the cost of those facilities, and the time required to build and install
those facilities.
4.1.2 The Customer shall be responsible for its share of all reasonable
expenses, including overheads, associated with (1) owning,
operating, maintaining, repairing, and replacing its own
Interconnection Facilities, and (2) operating, maintaining,
repairing, and replacing PSE&G’s Interconnection Facilities.
4.2
Distribution Upgrades
PSE&G shall design, procure, construct, install, and own any Distribution
Upgrades. The actual cost of the Distribution Upgrades, including
overheads, shall be directly assigned to the Customer.
Article 5.
Billing, Payment, Milestones, and Financial Security
25
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
5.1
Billing and Payment Procedures and Final Accounting
5.2
5.1.1
PSE&G shall bill the Customer for the design, engineering,
construction, and procurement costs of Interconnection Facilities
and Upgrades contemplated by this Agreement on a monthly basis,
or as otherwise agreed by the Parties. The Customer shall pay each
bill within 30 calendar days of receipt, or as otherwise agreed to by
the Parties.
5.1.2
Within ninety (90) calendar days of completing the construction
and installation of PSE&G’s Interconnection Facilities and
Distribution Upgrades described in the Attachments to this
Agreement, PSE&G shall provide the Customer with a final
accounting report of any difference between (1) the Customer’s
cost responsibility for the actual cost of such facilities and
Distribution Upgrades, and (2) the Customer’s previous deposit
and aggregate payments to PSE&G for such Interconnection
Facilities and Distribution Upgrades. If the Customer’s cost
responsibility exceeds its previous deposit and aggregate
payments, PSE&G shall invoice the Customer for the amount due
and the Customer shall make payment to PSE&G within thirty (30)
calendar days. If the Customer’s previous deposit and aggregate
payments exceed its cost responsibility under this Agreement,
PSE&G shall refund to the Customer an amount equal to the
difference within thirty (30) calendar days of the final accounting
report.
Customer Deposit
At least twenty (20) Business Days prior to the commencement of the
design, procurement, installation, or construction of a discrete portion of
PSE&G’s Interconnection Facilities and Distribution Upgrades, the
Customer shall provide PSE&G with a deposit equal to 50% of the cost
estimated for its Interconnection Facilities prior to its beginning design of
such facilities.
Article 6.
6.1
Assignment, Liability, Indemnity, Force Majeure, Consequential
Damages, and Default
Assignment
This Agreement may be assigned by either Party upon fifteen (15)
Business Days prior written notice, and with the opportunity to object by
the other Party; provided that:
26
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
6.1.1 Either Party may assign this Agreement without the consent of the
other Party to any affiliate of the assigning Party with an equal or
greater credit rating and with the legal authority and operational
ability to satisfy the obligations of the assigning Party under this
Agreement;
6.2
6.1.2
The Customer shall have the right to assign this Agreement,
without the consent of PSE&G, for collateral security purposes to
aid in providing financing for the Customer-generator Facility,
provided that the Customer will promptly notify PSE&G of any
such assignment.
6.1.3
Any attempted assignment that violates this Article is void and
ineffective. Assignment shall not relieve a Party of its obligations,
nor shall a Party’s obligations be enlarged, in whole or in part, by
reason thereof. An assignee is responsible for meeting the same
obligations as the Customer. Where required, consent to
assignment will not be unreasonably withheld, conditioned or
delayed.
Limitation of Liability
Each Party’s liability to the other Party for any loss, cost, claim, injury,
liability, or expense, including reasonable attorney’s fees, relating to or
arising from any act or omission in its performance of this Agreement,
shall be limited to the amount of direct damage actually incurred. In no
event shall either Party be liable to the other Party for any indirect, special,
consequential, or punitive damages, except as authorized by this
Agreement.
6.3
Indemnity
6.3.1
This provision protects each Party from liability incurred to third
parties as a result of carrying out the provisions of this Agreement.
Liability under this provision is exempt from the general
limitations on liability found in Article 6.2.
6.3.2 The Parties shall at all times indemnify, defend, and hold the other
Party harmless from, any and all damages, losses, claims,
including claims and actions relating to injury to or death of any
person or damage to property, demand, suits, recoveries, costs and
expenses, court costs, attorney fees, and all other obligations by or
to third parties, arising out of or resulting from the other Party’s
action or failure to meet its obligations under this Agreement on
behalf of the indemnifying Party, except in cases of gross
negligence or intentional wrongdoing by the indemnified Party.
27
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
6.3.3 If an indemnified person is entitled to indemnification under this
Article as a result of a claim by a third party, and the indemnifying
Party fails, after notice and reasonable opportunity to proceed
under this Article, to assume the defense of such claim, such
indemnified person may at the expense of the indemnifying Party
contest, settle or consent to the entry of any judgment with respect
to, or pay in full, such claim.
6.3.4 If an indemnifying party is obligated to indemnify and hold any
indemnified person harmless under this Article, the amount owing
to the indemnified person shall be the amount of such indemnified
person’s actual loss, net of any insurance or other recovery.
6.3.5
6.4
Promptly after receipt by an indemnified person of any claim or
notice of the commencement of any action or administrative or
legal proceeding or investigation as to which the indemnity
provided for in this Article may apply, the indemnified person
shall notify the indemnifying party of such fact. Any failure of or
delay in such notification shall not affect a Party’s indemnification
obligation unless such failure or delay is materially prejudicial to
the indemnifying party.
Consequential Damages
Other than as expressly provided for in this Agreement, neither Party shall
be liable under any provision of this Agreement for any losses, damages,
costs or expenses for any special, indirect, incidental, consequential, or
punitive damages, including but not limited to loss of profit or revenue,
loss of the use of equipment, cost of capital, cost of temporary equipment
or services, whether based in whole or in part in contract, in tort, including
negligence, strict liability, or any other theory of liability; provided,
however, that damages for which a Party may be liable to the other Party
under another agreement will not be considered to be special, indirect,
incidental, or consequential damages hereunder.
6.5
Force Majeure
6.5.1 As used in this Article, a Force Majeure Event shall mean “any act
of God, labor disturbance, act of the public enemy, war,
insurrection, riot, fire, storm or flood, explosion, breakage or
accident to machinery or equipment, any order, regulation or
restriction imposed by governmental, military or lawfully
established civilian authorities, or any other cause beyond a Party’s
control. A Force Majeure Event does not include an act of
negligence or intentional wrongdoing.”
28
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
6.5.2
6.6
If a Force Majeure Event prevents a Party from fulfilling any
obligations under this Agreement, the Party affected by the Force
Majeure Event (Affected Party) shall promptly notify the other
Party of the existence of the Force Majeure Event. The notification
must specify in reasonable detail the circumstances of the Force
Majeure Event, its expected duration, and the steps that the
Affected Party is taking to mitigate the effects of the event on its
performance, and if the initial notification was verbal, it should be
promptly followed up with a written notification. The Affected
Party shall keep the other Party informed on a continuing basis of
developments relating to the Force Majeure Event until the event
ends. The Affected Party will be entitled to suspend or modify its
performance of obligations under this Agreement (other than the
obligation to make payments) only to the extent that the effect of
the Force Majeure Event cannot be reasonably mitigated. The
Affected Party will use reasonable efforts to resume its
performance as soon as possible.
Default
6.6.1
No Default shall exist where such failure to discharge an obligation
(other than the payment of money) is the result of a Force Majeure
Event as defined in this Agreement, or the result of an act or
omission of the other Party. Upon a Default, the non-defaulting
Party shall give written notice of such Default to the defaulting
Party. Except as provided in Article 6.6.2, the defaulting Party
shall have 60 calendar days from receipt of the Default notice
within which to cure such Default; provided however, if such
Default is not capable of cure within 60 calendar days, the
defaulting Party shall commence such cure within 20 calendar days
after notice and continuously and diligently complete such cure
within six months from receipt of the Default notice; and, if cured
within such time, the Default specified in such notice shall cease to
exist.
6.6.2 If a Default is not cured as provided for in this Article, or if a
Default is not capable of being cured within the period provided
for herein, the non-defaulting Party shall have the right to
terminate this Agreement by written notice at any time until cure
occurs, and be relieved of any further obligation hereunder and,
whether or not that Party terminates this Agreement, to recover
from the defaulting Party all amounts due hereunder, plus all other
damages and remedies to which it is entitled at law or in equity.
The provisions of this Article will survive termination of this
Agreement.
29
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Article 7.
Insurance
General Liability Insurance coverage is not required under New Jersey’s
Net Metering regulations. However, the Customer still has responsibility
and/or liability for any damage(s) or injury(ies) caused by the Customergenerator Facility and/or the Customer’s Interconnection Facilities..
Article 8.
8.1
Miscellaneous
Governing Law, Regulatory Authority, and Rules
The validity, interpretation and enforcement of this Agreement and each
of its provisions shall be governed by the laws of the State of New Jersey,
without regard to its conflicts of law principles. This Agreement is subject
to all Applicable Laws and Regulations. Each Party expressly reserves the
right to seek changes in, appeal, or otherwise contest any laws, orders, or
regulations of a Governmental Authority.
8.2
Amendment
The Parties may amend this Agreement by a written instrument duly
executed by both Parties.
8.3
No Third-Party Beneficiaries
This Agreement is not intended to and does not create rights, remedies, or
benefits of any character whatsoever in favor of any persons, corporations,
associations, or entities other than the Parties, and the obligations herein
assumed are solely for the use and benefit of the Parties, their successors
in interest and where permitted, their assigns.
8.4
Waiver
8.4.1
The failure of a Party to this Agreement to insist, on any occasion,
upon strict performance of any provision of this Agreement will not be
considered a waiver of any obligation, right, or duty of, or imposed upon,
such Party.
8.4.2
Any waiver at any time by either Party of its rights with respect to
this Agreement shall not be deemed a continuing waiver or a waiver
with respect to any other failure to comply with any other obligation,
right, duty of this Agreement. Termination or default of this Agreement
for any reason by Customer shall not constitute a waiver of the
Customer’s legal rights to obtain an interconnection from PSE&G. Any
waiver of this Agreement shall, if requested, be provided in writing.
30
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
8.5
Entire Agreement
This Agreement, including all Attachments, constitutes the entire
Agreement between the Parties with reference to the subject matter hereof,
and supersedes all prior and contemporaneous understandings or
agreements, oral or written, between the Parties with respect to the subject
matter of this Agreement. There are no other agreements, representations,
warranties, or covenants which constitute any part of the consideration for,
or any condition to, either Party’s compliance with its obligations under
this Agreement.
8.6
Multiple Counterparts
This Agreement may be executed in two or more counterparts, each of
which is deemed an original but all constitute one and the same
instrument.
8.7
No Partnership
This Agreement shall not be interpreted or construed to create an
association, joint venture, agency relationship, or partnership between the
Parties or to impose any partnership obligation or partnership liability
upon either Party. Neither Party shall have any right, power or authority to
enter into any agreement or undertaking for, or act on behalf of, or to act
as or be an agent or representative of, or to otherwise bind, the other Party.
8.8
Severability
If any provision or portion of this Agreement shall for any reason be held
or adjudged to be invalid or illegal or unenforceable by any court of
competent jurisdiction or other Governmental Authority, (1) such portion
or provision shall be deemed separate and independent, (2) the Parties
shall negotiate in good faith to restore insofar as practicable the benefits to
each Party that were affected by such ruling, and (3) the remainder of this
Agreement shall remain in full force and effect.
8.9
Environmental Releases
Each Party shall notify the other Party, first orally and then in writing, of
the release any hazardous substances, any asbestos or lead abatement
activities, or any type of remediation activities related to the Customergenerator Facility or the Interconnection Facilities, each of which may
reasonably be expected to affect the other Party. The notifying Party shall
(1) provide the notice as soon as practicable, provided such Party makes a
good faith effort to provide the notice no later than 24 hours after such
Party becomes aware of the occurrence, and (2) promptly furnish to the
31
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
other Party copies of any publicly available reports filed with any
governmental authorities addressing such events.
8.10
Subcontractors
Nothing in this Agreement shall prevent a Party from utilizing the services
of any subcontractor as it deems appropriate to perform its obligations
under this Agreement; provided, however, that each Party shall require its
subcontractors to comply with all applicable terms and conditions of this
Agreement in providing such services and each Party shall remain
primarily liable to the other Party for the performance of such
subcontractor.
8.10.1 The creation of any subcontract relationship shall not relieve the
hiring Party of any of its obligations under this Agreement. The
hiring Party shall be fully responsible to the other Party for the acts
or omissions of any subcontractor the hiring Party hires as if no
subcontract had been made; provided, however, that in no event
shall PSE&G be liable for the actions or inactions of the Customer
or its subcontractors with respect to obligations of the Customer
under this Agreement. Any applicable obligation imposed by this
Agreement upon the hiring Party shall be equally binding upon,
and shall be construed as having application to, any subcontractor
of such Party.
8.10.2 The obligations under this Article will not be limited in any way by
any limitation of subcontractor’s insurance.
Article 9.
9.1
Notices
General
Unless otherwise provided in this Agreement, any written notice, demand,
or request required or authorized in connection with this Agreement
(“Notice”) shall be deemed properly given if delivered in person,
delivered by recognized national currier service, or sent by first class mail,
postage prepaid, to the person specified below:
If to Customer:
Customer: ____________________________________________
Attention: _________________________________
Address: __________________________________________________________
32
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
City: _______________________________ State:______________ Zip:_______
Phone: ________________ Fax: _________________
If to PSE&G:
Attention: _________________________________
Address: __________________________________________________________
City: _______________________________ State:______________ Zip:_______
Phone: ________________ Fax: _________________
33
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
9.2
Billing and Payment
Billings and payments shall be sent to the addresses set out below:
Customer: ____________________________________________
Attention: _________________________________
Address: __________________________________________________________
City: _______________________________ State:______________ Zip:_______
9.3
Designated Operating Representative
The Parties may also designate operating representatives to conduct the
communications which may be necessary or convenient for the
administration of this Agreement. This person will also serve as the point
of contact with respect to operations and maintenance of the Party’s
facilities.
Customer’s Operating
Representative:____________________________________________
Attention: _________________________________
Address: __________________________________________________________
City: _______________________________ State:______________ Zip:_______
Phone: ________________ Fax: _________________
PSE&G’s Operating Representative:
____________________________________________
Attention: ________________________________
Address: _________________________________________________________
City: _______________________________ State:______________ Zip:______
Phone: ________________ Fax: ________________
9.4
Changes to the Notice Information
34
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Either Party may change this information by giving five Business Days
written notice prior to the effective date of the change.
Article 10.
Signatures
IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed by their respective duly authorized representatives.
For PSE&G:
Name: ___________________________________________
Title: ____________________________________________
Date: ____________________________________________
For the Customer
Name: ___________________________________________
Title: ____________________________________________
Date: ____________________________________________
35
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Attachment 1
Glossary of Terms
Affected System – An electric system other than PSE&G’s Distribution System that may
be affected by the proposed interconnection.
Applicant – A person who has filed an application to interconnect a Customer-generator
Facility to PSE&G’s Distribution System, sometimes also referred to as the “Customer”.
Applicable Laws and Regulations – All duly promulgated applicable federal, State and
local laws, regulations, rules, ordinances, codes, decrees, judgments, directives, or
judicial or administrative orders, permits and other duly authorized actions of any
Governmental Authority.
Business Day – Monday through Friday, excluding Federal Holidays.
Class I Renewable Energy – has the meaning assigned to this term in N.J.A.C. 14:4-8.2.
Customer – Any entity that proposes to interconnect its Customer-Generating Facility
with PSE&G’s Distribution System.
Customer-generator – A residential or small commercial customer that generates
electricity on the Customer's side of the meter, with a generating facility that does not
exceed 2 MW in size.
Customer-generator Facility – The Customer’s device for the production of electricity
identified in the Interconnection Application, but shall not include the Customer’s
Interconnection Facilities.
Default – The failure of a breaching Party to cure its Breach under the terms of this
Interconnection Agreement.
Distribution System – The PSE&G facilities and equipment used to deliver electricity
from transformation points on the Transmission System to points of connection at a
Customer's premises
Distribution Upgrades – The additions, modifications, and upgrades to PSE&G’s
Distribution System at or beyond the Point of Common Coupling to facilitate the
interconnection of the Customer-generator Facility. Distribution Upgrades do not include
Interconnection Facilities.
Equipment Package – A group of components connecting an electric generator with an
electric distribution system, and includes all interface equipment including switchgear,
inverters, or other interface devices. An equipment package may include an integrated
generator or electric source.
36
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Facilities Study – An engineering study conducted by PSE&G (in coordination with any
Affected System) to determine the required modifications to PSE&G’s Distribution
System, including the cost and the time require to build and install such modifications, as
necessary to accommodate an Interconnection Application.
Good Utility Practice – Has the same meaning as assigned to this term in the Amended
and Restated Operating Agreement of the PJM Interconnection (April 2005), as amended
and supplemented, which is incorporated herein by reference. The Operating Agreement
can be obtained on the PJM Interconnection website at www.pjm.com. As of April 28,
2005, the Operating Agreement defines this term as "any of the practices, methods and acts
engaged in or approved by a significant portion of the electric utility industry during the
relevant time period, or any of the practices, methods and acts which, in the exercise of
reasonable judgment in light of the facts known at the time the decision was made, could
have been expected to accomplish the desired result at a reasonable cost consistent with good
business practices, reliability, safety and expedition. Good Utility Practice is not intended to
be limited to the optimum practice, method, or act to the exclusion of all others, but rather is
intended to include acceptable practices, methods, or acts generally accepted in the region."
Governmental Authority – Any federal, State, local or other governmental regulatory or
administrative agency, court, commission, department, board, or other governmental
subdivision, legislature, rulemaking board, tribunal, or other governmental authority
having jurisdiction over the Parties, their respective facilities, or the respective services
they provide, and exercising or entitled to exercise any administrative, executive, police,
or taxing authority or power; provided, however, that such term does not include the
Customer, PSE&G or any affiliate thereof.
IEEE Standards – The standards published by the Institute of Electrical and Electronics
Engineers, available at www.ieee.org.
Impact Study – An assessment by PSE&G of (i) the adequacy of PSE&G’s Distribution
System to accommodate an Interconnection Application, (ii) whether any additional costs
may be incurred in order to accommodate an Interconnection Application, and (iii) with
respect to an Interconnection Application, an estimate of the Customer’s cost
responsibility for PSE&G’s Interconnection Facilities.
Interconnection Agreement – This Agreement between the Customer-generator and
PSE&G, which governs the connection of the Customer-generator Facility to PSE&G’s
Distribution System, as well as the ongoing operation of the Customer-generator Facility
after it is connected to PSE&G’s system.
Interconnection Facilities – PSE&G’s Interconnection Facilities and the Customer’s
Interconnection Facilities. Collectively, Interconnection Facilities include all facilities
and equipment between the Customer-generator Facility and the Point of Common
Coupling, including any modification, additions or upgrades that are necessary to
physically and electrically interconnect the Customer-generator Facility to the PSE&G’s
Distribution System. Interconnection Facilities are sole use facilities and shall not include
Distribution Upgrades.
37
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Interconnection Application – The Customer’s request, in accordance with the Tariff, to
interconnect a new Customer-generator Facility, or to increase the capacity of, or make a
material modification to, the operating characteristics of an existing Customer-generator
Facility that is interconnected with PSE&G’s Distribution System.
Net Metering – A system of metering electricity in which PSE&G:
1. Credits a Customer-generator at the full retail rate for each kilowatt-hour
produced by a Class I renewable energy system not to exceed 2 MW in size,
installed on the Customer-generator’s side of the electric revenue meter, up to the
total amount of electricity used by that Customer during an annualized period; and
2. Compensates the Customer-generator at the end of the annualized period for any
remaining credits, at a rate equal to the electric supplier’s or BGS provider's
avoided cost of wholesale power.
NJBPU – The New Jersey Board of Public Utilities, or any such successor agency having
similar jurisdiction.
Operating Requirements – Any operating and technical requirements that may be
applicable due to PJM or PSE&G’s requirements, including those set forth in this
Interconnection Agreement.
Party or Parties – PSE&G, Customer or any combination of the two.
PJM or PJM Interconnection – the PJM Interconnection, L.L.C., or such successor
regional transmission organization to which PSE&G is electrically connected and
coordinates operations with.
Point of Common Coupling – Has the same meaning as assigned to this term in IEEE
Standard 1547 Section 3.0 (published July 2003), as amended and supplemented, which
is incorporated herein by reference. IEEE standard 1547 can be obtained through the
IEEE website at www.ieee.org. IEEE Standard 1547 Section 3.0 defined this term as
"the point in the interconnection of a Customer-generator Facility with an electric
distribution system at which the harmonic limits are applied."
PSE&G – The Public Service Electric and Gas Company, an electric public utility as the
term is defined in N.J.S.A. 48:2-13, that transmits or distributes electricity to end users
within New Jersey.
Tariff – The PSE&G electric Tariff and its Standard Terms and Conditions as filed with
the NJBPU, and as amended or supplemented from time to time, or any successor tariff.
Transmission Owner – PSE&G, unless referring to the owner of transmission facilities
in an Affected System.
38
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Transmission System – The facilities owned, controlled or operated by PSE&G or
another Transmission Owner that are used to provide transmission service under the PJM
Open Access Transmission Tariff.
39
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Attachment 2
One-line Diagram Depicting the Customer-generator Facility, Interconnection
Facilities, Metering Equipment, and Upgrades
40
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Attachment 3
Description, Costs and Time Required to Build and Install PSE&G’s
Interconnection Facilities
PSE&G’s Interconnection Facilities shall be itemized and a best estimate itemized cost,
including overheads, of the cost of its Interconnection Facilities will be provided from the
Facilities Study.
Also, and a best estimate for the time required to build and install PSE&G’s
Interconnection Facilities will be provided from the Facilities Study.
41
DRAFT – FOR DISCUSSION PURPOSES ONLY
June 21 - 2005
Attachment 4
Additional Operating Requirements for PSE&G’s
Distribution System and Affected Systems Needed to Support
the Customer’s Needs
If required, PSE&G shall also provide requirements that must be met by the Customer
prior to initiating parallel operation with PSE&G’s Distribution System, as listed below.
42